On November 9, the US federal banking agencies announced that they expect to delay implementation of three notices of proposed rulemaking released in June that would revise and replace the current regulatory capital rules. The proposals had suggested an effective date of January 1, 2013. According to the agencies, "Many industry participants have expressed concern that they may be subject to a final regulatory capital rule on January 1, 2013, without sufficient time to understand the rule or to make necessary systems changes. In light of the volume of comments received and the wide range of views expressed during the comment period, the agencies do not expect that any of the proposed rules would become effective on January 1, 2013. As members of the Basel Committee on Banking Supervision, the US agencies take seriously our internationally agreed timing commitments regarding the implementation of Basel III and are working as expeditiously as possible to complete the rulemaking process. As with any rule, the agencies will take operational and other considerations into account when determining appropriate implementation dates and associated transition periods."
The agencies did not release a new expected implementation date.
The release may be viewed here.©2014 Katten Muchin Rosenman LLP