The Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, “the agencies”) are adopting a final rule to simplify certain aspects of the capital rule. More... The final rule is responsive to the agencies’ March 2017 report to Congress pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996, in which the agencies committed to meaningfully reduce regulatory burden, especially on community banking organizations. The key elements of the final rule apply solely to banking organizations that are not subject to the advanced approaches capital rule. Under the final rule, non-advanced approaches banking organizations will be subject to simpler regulatory capital requirements for mortgage servicing assets, certain deferred tax assets arising from temporary differences, and investments in the capital of unconsolidated financial institutions than those currently applied. The final rule also simplifies, for non-advanced approaches banking organizations, the calculation for the amount of capital issued by a consolidated subsidiary of a banking organization and held by third parties (sometimes referred to as a minority interest) that is includable in regulatory capital. In addition, the final rule makes technical amendments to, and clarifies certain aspects of, the agencies’ capital rule for both non-advanced approaches banking organizations and advanced approaches banking organizations. Revisions to the definition of high-volatility commercial real estate exposure in the agencies’ capital rule are being addressed in a separate rulemaking. The final rule is effective October 1, 2019 (Regulation Q, Docket R-1576) and was published in the Federal Register on July 22, 2019.

Pursuant to the provisions of the Privacy Act of 1974, notice was given that the Board proposes to modify existing system of records BGFRS-38 “FRB—Transportation Subsidy Records.” More... This system of records is used by the Board to track and monitor employee participation in the transportation subsidy program. The modified system of records will become effective October 3, 2019, without further notice, unless comments dictate otherwise (Rules Regarding Access to Personal Information under the Privacy Act of 1974, Systems of Records of the Federal Reserve System). The modified system of records was published in the Federal Register on September 3, 2019.

Included in this transmittal are revised finding tables and citation indexes reflecting all changes since the last revision that was issued in October 2018 (transmittal 452).