Agencies Propose Rule Regarding the Treatment of High Volatility Commercial Real Estate

(September 18, 2018) - - Three federal banking agencies (The Board of Governors of the Federal Reserve System, The Federal Deposit Insurance Corporation, The Office of the Comptroller of the Currency) on Tuesday invited public comment on a proposal to modify the agencies' capital rules for high volatility commercial real estate exposures, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act.

The proposal also asks for comment on certain terms contained in the revised definition of high volatility commercial real estate. The changes, when finalized, would apply to all banking organizations subject to the agencies' capital rules. Comments will be accepted for 60 days after publication in the Federal Register.

Courtesy: Board of Governors of the Federal Reserve Board