For immediate release

The Federal Reserve Board today requested comment on a proposal to amend its risk-based and Tier 1 leverage capital guidelines for state member banks and bank holding companies to address the treatment of servicing assets on both mortgage assets and financial assets other than mortgages (non-mortgages). Comment is requested by October 6, 1997. Under this proposed rule, the amount of mortgage servicing assets (and purchased credit card relationships) includable in regulatory capital would be increased from 50 to 100 percent. In addition, all non-mortgage servicing assets would be fully deducted from Tier 1 capital. This proposed rule was developed in response to a recent Financial Accounting Standards Board accounting standard, Statement of Financial Accounting Standards No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" (FAS 125), which changed the accounting treatment for servicing assets. The proposal also is being issued by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision. The interagency notice is attached.

Summary only | Summary and proposed rule (82 KB PDF)

1997 Banking and consumer regulatory policy