Agencies Issue Basel III Calculator

ICBA Urges Community Banks to Send Comment Letters By Oct. 22

The federal banking agencies today released a Basel III regulatory capital estimation tool that allows every community bank to estimate the impact of the proposed rules released in June. The agencies released an estimator for banks and thrifts and a separate one for bank holding companies and thrift holding companies.

The new calculator—which is an Excel spreadsheet—has been pre-populated with bank data from the June 30 call reports. Once the preparer fills in the bank’s FDIC certificate number, data specific to that bank will automatically appear on the spreadsheet. The calculator also will identify the information banks need to submit to obtain an estimate of their regulatory capital ratios under the proposal. Bankers will also need to refer to the Basel III proposal to complete the calculator.

Once the calculator is completed, ICBA strongly urges every bank to write a comment letter by the Oct. 22 comment deadline describing how the Basel III proposal will affect the bank’s risk-based capital ratios. Guidelines for drafting a comment letter, including a template and insertable talking points, can be found on the ICBA website.

Every bank should examine the impact to its risk-based capital ratios of the proposed new risk weights on mortgages—particularly balloon mortgages where risk weights will double—as well as the proposed inclusion of accumulated other comprehensive income as part of regulatory capital. The more personalized comment letters that ICBA members send to the regulators, the greater the chance of significant changes to the proposal.

ICBA also continues to call on community bankers to sign its petition calling on regulators to exempt community banks from the Basel III proposals. More information, including a summary of the proposal, talking points, a link to the FDIC’s Power Point presentation, an ICBA Basel III audio presentation and ICBA news coverage, is available on ICBA’s comprehensive Basel III webpage.

Access the Calculator.

Sign ICBA’s Basel III Petition.

Learn More About the Proposal.

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