Federal regulators have extended the comment period on a proposed rule that would place long-term debt requirements on large banks.
The Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency moved the deadline from Nov. 30 to Jan. 16.
“The agencies extended the comment period to allow interested parties more time to analyze the issues and prepare their comments,” they said in a joint statement.
The proposal would require banks with more than $100 billion of assets to issue more long-term debt in hopes of improving resolutions of failed banks. The proposal would require big banks to have a minimum amount of eligible long-term debt equal to the greater of 6% of risk-weighted assets or 3.5% of average total assets.
Banks would have three years to comply.
The new date coincides with the Jan. 16 deadline for comments on a separate proposal to revamp capital requirements for banks with $100 billion or more of assets.