The updated guidelines, released Thursday, also adds advice on troubled debt restructurings, accounting for acquired loans, transfers of servicing rights and making allowances for losses. It includes updated guidance on topics such as investments in debt securities, stock sales and lease classification.
The OCC's latest issuance does not contain new rules, but offers the agency's interpretation of existing rules. The guidance is meant to help banks resolve commonly asked questions and consistently apply accounting standards across their financial reporting, the OCC said. It plans to issue updated guidelines at least once a year.
Banking regulators issued their final Basel III rule for regulatory capital in July. It takes effect at the beginning of next January for the largest banks and at the beginning of 2015 for others. The rule requires banks to hold Tier 1 capital of 6%, a common Tier 1 equity ratio of 4.5% and a ratio of total capital to risk-weighted assets of 8%.