FDIC considering rule changes

The Federal Deposit Insurance Corporation board of directors is voting this morning on rule changes that could impact the country’s largest banks.

It is considering additional exemptions to the high risk mortgage appraisal rule, which could increase the required leverage ratio standards for certain bank holding companies and the institutions they control.

According to MarketWatch, the board is considering a plan in which the six largest federally insured commercial banks would be expected to hold 6 percent of total assets in capital. Commercial banking subsidiaries would be subject to a 5 percent requirement.

This is a significant increase from the Basel III agreement and would force almost all of the banks to raise capital or divest assets.

In addition, the FDIC will consider regulatory capital rules, regulatory capital, implementation of Basel III, capital adequacy, transition provisions, prompt corrective action, standardized approach for risk-weighted assets, market discipline and disclosure requirements, advanced approaches to the risk-based capital rule and the market risk capital rule.

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