Risk-Based Capital Standards; Unrealized Holding Gains on Certain Equity Securities — 1997-10-27 [97-28269]

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the Agencies) are proposing to amend their respective risk-based capital standards for banks, bank holding companies and thrifts (institutions) with regard to the treatment of unrealized holding gains on certain equity securities. These gains are reported as a component of equity capital under U.S. generally accepted accounting principles (GAAP), but currently are not included in regulatory capital under the Agencies' capital standards. The proposal, if adopted as a final rule, would establish uniform interagency rules permitting institutions to include in supplementary (Tier 2) capital up to 45 percent of unrealized gains on certain available-for-sale equity securities.