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Proposal:

1712(AF86) Reg Q; Paycheck Protection Program Lending Facility and Paycheck
Protection Program Loans

Description:
Comment ID:

137202

From:

Alpine Bank, Eric Gardey

Proposal:

1712(AF86) Reg Q; Paycheck Protection Program Lending Facility and Paycheck
Protection Program Loans

Subject:

Regulatory Capital Rule: Paycheck Protection Program Lending Facility and
Paycheck Protection Progra

Comments:
NONCONFIDENTIAL // EXTERNAL
Regulatory Capital Rule: Paycheck Protection Program Lending Facility and Paycheck Protection
Program Loans
My understanding of the Interim final rule is that PPP loans a bank makes must be pledged to the new
PPPL Facility in order to be excluded from the calculation of Average Total Consolidated Assets or Total
Leverage Exposure. Our organization has sufficient on balance sheet liquidity to fund the expected
volume of PPP loans we originate. At this time, we do not anticipate having to access the PPPL
Facility.
The interim final rule as written puts us at a disadvantage in terms of calculating our Leverage Capital
Ratio. We will need to include all PPP loans on our books in the Average Total Consolidated Assets
calculation.
I would suggest that all PPP loans carried on the books of a bank, whether pledged to the PPPL
Facility or not, be excluded from the calculation of total leverage exposure, average total consolidated
assets, advanced approaches-total risk weighted assets, and standardized total risk-weighted assets.
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Eric Gardey
Chief Financial Officer
Tel: +19703843257
2200 Grand Ave.
Glenwood Springs, CO 81601
[https://www.alpinebank.com