The US Federal Reserve Board requested comments on a proposal to modernize rules for mutual banking organizations on Friday. The proposal seeks to clarify which instruments count as regulatory capital and to reduce procedural burdens for these institutions.
Mutual banking organizations are owned by depositors rather than shareholders. The current regulatory framework for these banks was first established in 1993 and has not been updated since, which has resulted in rules that are considered overly burdensome and complex. The new proposal aims to increase flexibility for certain mutual banks to raise capital.
Have total assets of less than $3 billion
Today's proposal is another important step in our work to modernize the bank regulatory framework...
The Federal Reserve Board assumed regulatory and supervisory authority over mutual banks from the Office of Thrift Supervision in 2011. Comments on the proposal are due 60 days after its publication in the Federal Register.
Public comments must be submitted within 60 days of the proposal's appearance in the Federal Register.