Comptroller Issues Statement on Federal Reserve Board’s Action to Provide Clarity on Capital Instruments for Mutual Banking Organizations

WASHINGTON-Comptroller of the Currency Jonathan V. Gould issued the following statement today following the Federal Reserve Board's release of guidance to provide clarity on capital instruments for mutual banking organizations:

The OCC commends the Federal Reserve Board for its recent action to support mutual banking organizations by providing clarification regarding mutual capital certificates and alternative mutual capital instruments. The OCC fully supports mutual banking organizations, including OCC-supervised federal mutual savings associations. The OCC recently authorized a federal mutual savings association to issue an innovative form of mutual capital certificate that qualifies as regulatory capital. This was the first approval for a mutual capital certificate for a federal mutual savings association in decades.

The OCC recognizes the unique role mutual banking organizations serve in their local communities and the challenges of raising capital. Community banks, including mutual banking organizations, play a critical role in lending to local communities and are vital to the strength of the U.S. economy. The OCC will continue to support OCC-supervised mutual savings associations by considering the specific needs of mutual associations through active engagement with the mutual industry.

Related Link

• Comptroller of the Currency Jonathan V. Gould