Regulatory Capital Rule: Paycheck Protection Program Lending Facility and Paycheck Protection Program Loans; Correction
| Published date | 21 April 2020 |
| Citation | 85 FR 22009 |
| Record Number | 2020-08361 |
| Section | Rules and Regulations |
| Court | Federal Deposit Insurance Corporation |
Federal Register, Volume 85 Issue 77 (Tuesday, April 21, 2020)
[Federal Register Volume 85, Number 77 (Tuesday, April 21, 2020)]
[Rules and Regulations]
[Pages 22009-22010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08361]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 324
RIN 3064-AF49
Regulatory Capital Rule: Paycheck Protection Program Lending
Facility and Paycheck Protection Program Loans; Correction
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Final rule; correcting amendment.
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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is correcting
its rule text in conjunction with the interagency interim final rule
[[Page 22010]]
that appeared in the Federal Register on April 13, 2020, titled
``Regulatory Capital Rule: Paycheck Protection Program Lending Facility
and Paycheck Protection Program Loans.'' This correction is necessary
to conform the FDIC's rule text to the regulations of the other federal
banking agencies that issued that interagency interim final rule.
DATES: Effective April 21, 2020.
FOR FURTHER INFORMATION CONTACT: FDIC: Michael Phillips, Counsel,
[email protected]; Catherine Wood, Counsel, [email protected]; Francis
Kuo, Counsel, [email protected], Supervision Branch, Legal Division,
Federal Deposit Insurance Corporation, 550 17th Street NW, Washington,
DC 20429.
SUPPLEMENTARY INFORMATION: On April 13, 2020, the Office of the
Comptroller of the Currency (OCC), Board of Governors of the Federal
Reserve System (Board), and the FDIC (collectively, the agencies)
published a final rule ``Regulatory Capital Rule: Paycheck Protection
Program Lending Facility and Paycheck Protection Program Loans'' (PPPL
final rule).\1\ In the wake of economic disruptions caused by COVID-19,
the Board of Governors of the Federal Reserve System authorized each of
the Federal Reserve Banks to participate in the Paycheck Protection
Program Lending Facility (PPPL Facility), pursuant to section 13(3) of
the Federal Reserve Act, to provide liquidity to small business lenders
and the broader credit markets, to help stabilize the financial system,
and to provide economic relief to small businesses nationwide. The PPPL
final rule allows banking organizations to neutralize the regulatory
capital effects of participating in the facility.
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\1\ 85 FR 20387 (April 13, 2020).
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The PPPL final rule permits banking organizations to exclude
exposures pledged as collateral to the PPPL Facility from a banking
organization's total leverage exposure, average total consolidated
assets, advanced approaches-total risk-weighted assets, and
standardized total risk-weighted assets, as applicable. The PPPL final
rule also amends section 32 of the FDIC's regulatory capital rule to
clarify that PPP covered loans originated by a banking organization
under the Paycheck Protection Program will receive a zero percent risk
weight.\2\
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\2\ See the definition of ``total capital'' in the FDIC's
capital rules in 12 CFR 324.2.
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This correcting amendment will add a new Sec. 324.131(e)(3)(viii)
to the FDIC's regulatory capital rule in conformance with the
regulatory capital rules of the other federal banking agencies.
For the reasons stated in the preamble, the FDIC corrects 12 CFR
part 324 as follows:
PART 324--CAPITAL ADEQUACY OF FDIC-SUPERVISED INSTITUTIONS
0
1. The authority citation for part 324 continues to read as follows:
Authority: 12 U.S.C. 1815(a), 1815(b), 1816, 1818(a), 1818(b),
1818(c), 1818(t), 1819(Tenth), 1828(c), 1828(d), 1828(i), 1828(n),
1828(o), 1831o, 1835, 3907, 3909, 4808; 5371; 5412; Pub. L. 102-233,
105 Stat. 1761, 1789, 1790 (12 U.S.C. 1831n note); Pub. L. 102-242,
105 Stat. 2236, 2355, as amended by Pub. L. 103-325, 108 Stat. 2160,
2233 (12 U.S.C. 1828 note); Pub. L. 102-242, 105 Stat. 2236, 2386,
as amended by Pub. L. 102-550, 106 Stat. 3672, 4089 (12 U.S.C. 1828
note); Pub. L. 111-203, 124 Stat. 1376, 1887 (15 U.S.C. 78o-7 note);
Pub. L. 115-174; Pub. L. 116-136, 134 Stat. 281.
0
2. Amend Sec. 324.131 by adding paragraph (e)(3)(viii) to read as
follows:
Sec. 324.131 Mechanics for calculating total wholesale and retail
risk-weighted assets.
* * * * *
(e) * * *
(3) * * *
(viii) The risk-weighted asset amount for a Paycheck Protection
Program covered loan as defined in section 7(a)(36) of the Small
Business Act (15 U.S.C. 636(a)(36)) equals zero.
* * * * *
Federal Deposit Insurance Corporation.
Dated in Washington, DC, on April 15, 2020.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2020-08361 Filed 4-20-20; 8:45 am]
BILLING CODE 6714-01-P
