Organization; Funding and Fiscal Affairs, Loan Policies and Operations, and Funding Operations; Disclosure to Shareholders; Title V Conservators and Receivers; Capital Provisions

Résumé

The Farm Credit Administration (FCA or Agency), through the FCA Board (Board), issues a proposed rule to amend its capital adequacy and related regulations to address interest rate risk as it pertains to Farm Credit System (System) institutions, the definition of insolvency for the purpose of appointing a receiver, the establishment of capital and bylaw requirements for System service corporations, and changes to risk-weighting categories. In addition, the proposed regulations address the retirement of other allocated equities included in core surplus, deferred-tax assets, the treatment of intra-System investments for capital computation purposes, various other computational issues, and other technical issues. The rule is intended to add safety and soundness requirements deferred from prior rulemakings, provide more consistency with capital requirements of other financial regulators, and make technical corrections.