The Federal Reserve Board announced Tuesday that banks with assets of less than $50 billion will have one year before they must adhere to Basel III standards for their stress tests and capital plans.
Depending on the size of the bank, the Basel III capital standards will take effect in 2014 or 2015.
Stress-testing begins Oct. 1, and banks with between $10 billion and $50 billion in total assets can use the Fed's current regulatory-capital rules for this cycle.
"The delay is intended to allow these smaller institutions time to adjust their internal systems to the new rules, the Fed said. They will have to employ Basel III standards in the testing cycle that starts in October 2014," writes American Banker's Chris Cumming.
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