(a) In general. Subject to paragraphs (b) through (g) of this section
and notwithstanding any other requirement in this part, when calculating
on-balance sheet assets as of each day of a reporting quarter for
purposes of determining the Board-regulated institution’s total leverage
exposure under section 217.10(c), a Board-regulated institution that
is a depository institution holding company or a U.S. intermediate
holding company must, and a Board-regulated institution that is a
state member bank may, exclude the balance sheet carrying value of
the following items:
(1) U.S. Treasury securities; and
(2) Funds on deposit at a
Federal Reserve Bank.
(b) Opt-in period. Before applying the relief
provided in paragraph (a) of this section, a state member bank must
first notify the Board before July 1, 2020.
(c) Calculation of relief. When calculating
on-balance sheet assets as of each day of a reporting quarter, the
relief provided in paragraph (a) of this section applies from the
beginning of the reporting quarter in which the state member bank
filed an opt-in notice through the termination date specified in paragraph
(d) of this section.
(d) Termination of exclusions. This section shall cease to be effective
after the reporting period that ends March 31, 2021.
(e) Custodial banking organizations. A custodial banking organization must reduce the amount in section
217.10(c)(2)(x)(A) (to no less than zero) by any amount excluded under
paragraph (a)(2) of this section.
(f) Disclosure. Notwithstanding Table 13 to
section 217.173, a Board-regulated institution that is required to
make the disclosures pursuant to section 217.173 must exclude the
items excluded pursuant to paragraph (a) of this section from Table
13 to section 217.173.
(g) Board approval for distributions. During the calendar quarter
beginning on July 1, 2020, and until March 31, 2021, no state member
bank that has opted in to the relief provided under paragraph (a)
of this section may make a distribution, or create an obligation to
make such a distribution, without prior Board approval. When reviewing
a request under this paragraph (g), the Board will consider all relevant
factors, including whether the distribution would be contrary to the
safety and soundness of the state member bank; the nature, purpose,
and extent of the request; and the particular circumstances giving
rise to the request.
