BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D.C. 20551

DIVISION OF BANKING

SUPERVISION AND REGULATION

SR 15-6

April 6, 2015

TO THE OFFICER IN CHARGE OF SUPERVISION

 AT EACH FEDERAL RESERVE BANK

SUBJECT: Interagency Frequently Asked Questions (FAQs) on the Regulatory Capital 

Rule1

Applicability: This guidance applies to state member banks, bank holding companies, and 

savings and loan holding companies (not substantially engaged in insurance underwriting or 

commercial activities) supervised by the Federal Reserve, including those with $10 billion or less 

in consolidated assets.

The Federal Reserve, together with the Office of the Comptroller of the Currency and the

Federal Deposit Insurance Corporation (the agencies), is issuing the attached FAQs in response 

to questions from regulated institutions about the agencies’ regulatory capital rule. Unless 

otherwise noted, all FAQs are interpretations and serve to clarify expectations concerning the 

regulatory capital rules. The FAQ topics include, but are not limited to:

• The definition of capital,

• High-volatility commercial real estate (HVCRE) exposures,

• Real estate and off-balance-sheet exposures,

• Equity exposures to investment funds,

• Qualifying central counterparty, and

• Credit valuation adjustment.

FAQs that are relevant only for advanced approaches banking organizations are marked 

with an asterisk (*). In addition, this SR letter identifies below several other SR letters that are 

superseded as being no longer applicable. 

1 See 78 Fed. Reg. 62018 (October 11, 2013). The Board’s regulatory capital rule is codified at 12 CFR 217

(Regulation Q).

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Reserve Banks are asked to distribute this letter and the FAQs to the state member banks, 

bank holding companies, and relevant savings and loan holding companies in their districts and 

to appropriate supervision staff. As the agencies anticipate issuing additional FAQs in response 

to questions from institutions, the Federal Reserve will periodically update the FAQ document 

that is attached to this SR letter.

Questions concerning the regulatory capital rule and attendant FAQs should be directed 

to the following staff in the Board’s Capital and Regulatory Policy Section: Andrew Willis, 

Supervisory Financial Analyst, at (202) 912-4323, Justyna Milweski, Senior Financial Analyst,

at (202) 452-3607, or Matthew McQueeney, Senior Financial Analyst, at (202) 452-2942. In 

addition, questions may be sent via the Board’s public website.2

Maryann F. Hunter

Deputy Director

Attachment: 

• Frequently Asked Questions on the Regulatory Capital Rule 

Cross references to:

• SR letter 13-19, “Guidance on Managing Outsourcing Risk”

• SR letter 10-16, “Interagency Appraisal and Evaluation Guidelines”

Superseded SR letters:

• SR letter 10-4, “Clarification of the Risk Weight for Claims on or Guaranteed by the 

FDIC”

• SR letter 05-13, “Interagency Guidance on the Eligibility of Asset-Backed Commercial 

Paper Program Liquidity Facilities and the Resulting Risk-Based Capital Treatment”

• SR letter 02-16, “Questions and Answers on the Capital Treatment of Recourse, Direct 

Credit Substitutes, and Residual Interests in Asset Securitizations”

• SR letter 02-12, “Regulatory Capital Treatment of Accrued Interest Receivables Related 

to Credit Card Securitizations”

• SR letter 02-4, “Final Capital Rules for Nonfinancial Equity Investments”

• SR letter 99-32, “Capital Treatment for Synthetic Collateralized Loan Obligations”

2 http://www.federalreserve.gov/apps/contactus/feedback.aspx. 

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