Risk-Based Capital Standards: Construction Loans on Presold Residential Properties; Junior Liens on 1- to 4-Family Residential Properties; and Mutual Funds and Leverage Capital Sta — 1997-10-27 [97-28271]

The Board of Governors of the Federal Reserve System is proposing to amend its risk-based capital guidelines for bank holding companies by revising the treatment for junior liens on 1- to 4-family residential properties and mutual funds and the language for construction loans on presold residential properties, and to simplify the leverage capital guidelines for bank holding companies. The proposal, which was developed on an interagency basis, would implement part of section 303 of the Riegle Community Development and Regulatory Improvement Act of 1994, which requires the Federal banking agencies to work jointly to make uniform their regulations and guidelines implementing common statutory or supervisory policies.