Bankowość · 28.12.1994

Capital Maintenance

The FDIC has decided not to proceed with its proposal to include net unrealized holding gains (losses) on available-for-sale securities in Tier 1 capital. Instead, the FDIC is adopting only technical wording changes to conform the language in its leverage and risk-based capital standards with the terminology used in Statement of Financial Accounting Standards No. 115, ``Accounting for Certain Investments in Debt and Equity Securities'' (FASB 115). For regulatory capital purposes, this FDIC final rule requires net unrealized holding losses on available-for-sale equity securities with readily determinable fair values to be deducted in determining the amount of Tier 1 capital. All other net unrealized holding gains (losses) on available-for-sale securities are excluded from the definition of Tier 1 capital. However, for purposes of the quarterly Reports of Condition and Income (Call Reports) filed by FDIC-supervised institutions, the Federal Financial Institutions Examination Council (FFIEC) requires net unrealized gains (losses) on all available-for-sale securities to be reported as a separate component of stockholders' equity, in accordance with FASB 115.