Joint Release/Agencies Issue Three Final Rules — 2020-08-26

Board of Governors of the Federal Reserve System Joint Release Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Agencies Issue Three Final Rules The federal bank regulatory agencies today finalized three rules, which are either identical or substantially similar to interim final rules currently in effect that were issued earlier this year. They include:  A final rule that temporarily modifies the community bank leverage ratio, as required by the CARES Act;  A final rule that makes more gradual, as intended, the automatic restrictions on distributions if a banking organization’s capital levels decline below certain levels; and  A final rule that allows institutions that adopt the current expected credit losses or "CECL" accounting standard in 2020 to mitigate the estimated effects of CECL on regulatory capital for two years. The final rule modifying the community bank leverage ratio adopts without change two interim final rules issued in April.