The three Federal bank regulatory agencies (the “Agencies”) have adopted new capital regulations implementing the first portion of the international principles, known as “Basel III,” agreed in the Basel Committee on Banking Supervision (“BCBS”). The new rules will become effective for community banking organizations on January 1, 2015, a year after their application to larger banks.

The actions by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation came almost a year after they proposed rules embodying those principles. Following vigorous opposition to portions of the proposals by community bankers and members of Congress, and extensive inter-agency negotiations, the new regulations reflect significant adjustments to meet the concerns of community banks.