The Office of the Comptroller of the Currency (OCC) announced a final rule to tailor capital and liquidity requirements for certain banking organizations with more than $100 billion in total consolidated assets to more closely match their risk profiles. The final rule builds on the OCC’s existing practice of tailoring capital and liquidity requirements based on the size, complexity, and overall risk profile of banking organizations.

The final rule, which was developed jointly by the OCC, the Board of Governors of the Federal Reserve System (Federal Reserve), and the Federal Deposit Insurance Corporation, establishes risk-based categories for determining applicability of requirements under the regulatory capital rule, the liquidity coverage ratio rule, and the proposed net stable funding ratio rule for large U.S. banking organizations.

The final rule is consistent with a separate rule issued by the Federal Reserve that applies certain prudential standards for large U.S. banking organizations based on the same categories.