Type:Rule
Citation:86 FR 3761
Reading Time:about 3 minutes
The Federal Reserve System has made a correction to the definition of "eligible retained income" in its capital rule, which affects how banks calculate limits on capital distributions and bonuses. This change clarifies inconsistencies introduced by the stress capital buffer rule and aligns with definitions set in previous rules from March and October 2020. The corrected rule is effective from January 15, 2021. For more details, contact the legal team at the Federal Reserve using the provided phone numbers.
Simple Explanation
The Federal Reserve fixed a small mistake about the rules banks use for deciding how much money they can safely give out as bonuses or share with owners. This fix makes sure the rules are clear and match what was already decided before.