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7/26/24, 1:37 PM FRB: Press Release -- Final rule amendment to tier 1 leverage capital standard for BHCs -- June 1, 1998 Release Date: June 1, 1998 For immediate release The Federal Reserve Board has issued a final rule amending the Tier 1 leverage capital standard for bank holding companies. The rule is effective June 30, 1998. The amendment to Regulation Y establishes a minimum ratio of Tier 1 capital to total assets (leverage ratio) of 3.0 percent for bank holding companies that either are rated composite "1" under the BOPEC rating system or have implemented the Board's riskbased capital market risk measure. The minimum leverage ratio for all other bank holding companies is 4.0 percent. Bank holding companies are expected to maintain higher-than-minimum capital ratios if they have supervisory, financial, operational, or managerial weaknesses, or if they are anticipating or experiencing significant growth. The Board's notice is attached. Summary only | Final rule (15 KB PDF) 1998 Banking and consumer regulatory policy Home | News and events Accessibility Last update: June 2, 1998, 2:30 PM https://www.federalreserve.gov/boarddocs/press/boardacts/1998/19980601/ 1/1