FDIC · other · Published 1995-08-31 · Effective 1995-08-31 · 60 FR 45606
Document
Document number
95-21567
Federal Register citation
60 FR 45606
CFR reference
12 CFR 325
Type
Rule
Action
Interim rule with request for comment.
Category
other
Agency
US Federal Deposit Insurance Corporation
Publication date
1995-08-31
Effective date
1995-08-31
Abstract
The FDIC is amending its capital adequacy standards for FDIC- supervised banks with regard to the regulatory capital treatment of certain transfers with recourse. This amendment is being adopted to implement section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994 (Riegle Act). Section 208 provides that a qualifying insured depository institution that transfers small business loans and leases on personal property with recourse need include only the amount of retained recourse in its risk-weighted assets when calculating its capital ratios, provided that certain conditions are met. This rule will have the effect of lowering the capital requirements for small business loans and leases on personal property that have been transferred with recourse by qualifying insured depository institutions that are supervised by the FDIC.