Last week, the Federal Reserve, OCC and FDIC published a joint notice of proposed rulemaking in the Federal Register to implement Section 402 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, which would modify the supplementary leverage ratio (“SLR”) in their regulatory capital rules to exclude certain funds of custodial banking organizations deposited with certain central banks. A banking organization would be considered a custodial banking organization if it is a U.S. top-tier depository institution holding company with a ratio of assets under custody to total assets of at least 30 to 1, or a subsidiary depository institution of any such holding company. Under the proposal, a custodial banking organization would exclude deposits placed at a Federal Reserve Bank, the European Central Bank and certain other central banks from its “total leverage exposure” (the denominator of the SLR), subject to a limit on the amount of deposits that could be excluded calculated as the amount of deposit liabilities of the custodial banking organization that are linked to fiduciary or custody and safekeeping accounts