View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Joint Press Release
March 17, 2020

Federal banking agencies provide banks additional flexibility to support
households and businesses
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For release at 9:15 a.m. EDT

The federal bank regulatory agencies today announced two actions to support the U.S. economy and allow
banks to continue lending to households and businesses. They are:
A statement encouraging banks to use their resources to support households and businesses; and
A technical change to phase in, as intended, the automatic distribution restrictions gradually if a firm's
capital levels decline.
The statement notes that banks have more than doubled their capital and liquidity levels over the past decade
and are now substantially safer and stronger than they were previously. As a result, the agencies are
encouraging banks to use that strength to support households and businesses. The statement is substantially
similar to one issued by the Federal Reserve Board earlier this week.
The technical change is an interim final rule that, if a bank's capital declines by a certain amount, phases in
the agencies' automatic distribution restrictions gradually, as intended. Like the statement, the interim final
rule facilitates the use of firms' capital buffers to promote lending activity to households and businesses.

Statement on the Use of Capital and Liquidity Buffers (PDF)
Comments: Submit | View
Federal Register notice: Regulatory Capital Rule: Eligible Retained Income

Media Contacts:
Federal Reserve Board

Related Content
Board Votes

Eric Kollig
David Barr
Bryan Hubbard

(202) 452-2955
(202) 898-6895
(202) 649-6747

Last Update: March 24, 2020