Request for Comment on a Proposal to Amend Risk-Based Capital Guidelines - District Notice 01-91 -

Federal Reserve Bankll Kof DallasDALLAS, TEXAS 75265-5906December 5, 2001Notice 01-91TO: The Chief Executive Officer of eachfinancial institution and others concernedin the Eleventh Federal Reserve DistrictSUBJECTRequest for Comment on a Proposal toAmend Risk-Based Capital GuidelinesDETAILSThe Board of Governors of the Federal Reserve System has requested public comment ona proposal to amend its risk-based capital guidelines to clarify that deferred tax assets in excessof the allowable amount (disallowed deferred tax assets) are included in the items deducted fromtier 1 capital for the purpose of determining• the maximum allowable amount of tier 2 capital that a banking organization mayinclude in qualifying total capital, and• the maximum allowable amount of term subordinated debt and intermediate-termpreferred stock that may be treated as supplementary capital.The proposed rule would reduce the maximum allowable amount of tier 2 capital forinstitutions that have disallowed deferred tax assets, as well as the amount of term subordinateddebt and intermediate-term preferred stock that those institutions could include in supplementarycapital. This clarification will make the Federal Reserve’s capital guidelines consistent withthose of the Office of the Comptroller of the Currency, the Federal Deposit InsuranceCorporation, and the Office of Thrift Supervision.The Board must receive comments by December 27, 2001. Please address comments ...