Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 25

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 25
---
and to certain restrictions on our business. Refer 
to “Prompt Corrective Action” below for further
discussion. 
In
December 2017,
the Basel
Committee published
standards that
it
described as
the finalization
of the
Basel III
post-
crisis regulatory
reforms. Among other
things, these
standards revise
the Basel
Committee’s standardized approach
for credit
risk 
(including
by
recalibrating
risk
weights
and
introducing
new
capital
requirements
for
certain
“unconditionally
cancellable 
commitments,” such
as
unused credit
card
lines of
credit) and
provide
a new
standardized approach
for operational
risk capital. 

  16 
Under the current U.S. capital rules, operational risk capital requirements and a capital floor apply only to Category I and Category II 
banking organizations and not to Popular, BPPR and PB. 
In
December
2018,
the
federal
banking
agencies
approved
a
final
rule
modifying
their
regulatory
capital
rules
and 
providing an
option to
phase in
over a
period of
three years
the day-one
regulatory capital
effects of
the Current
Expected Credit 
Loss (“CECL”) model
of ASU 2016-13.
The final
rule also revised
the agencies’
other rules to
reflect the update
to the
accounting 
standards. Popular has availed itself
of the option to
phase in over a period
of three years the
day one effects on
regulatory capital 
from the
adoption of
CECL. In
2020, federal
bank regulators
adopted a
rule that
allowed banking
organizations to
elect to
delay 
temporarily
the
estimated
effects
of
adopting
CECL
on
regulatory
capital
until
January
2022
and
subsequently
to
phase
in
the 
effects
through January
2025. Our
2024
regulatory capital
ratios reflect
this election
to
phase in
the effects
of
CECL, but
future 
regulatory capital ratios will include the full impact
from CECL now that the phase-in period has ended. 
Refer to
the