Release Date: October 6, 2005
For immediate release
The Federal Reserve Board on Thursday decided to request public comment on proposed revisions to the U.S. risk-based capital standards for banking organizations. These current standards are based upon the 1988 Basel Capital Accord, also known as Basel I.
The proposed revisions should more closely align risk-based capital requirements with the risk inherent in various exposures and could mitigate competitive inequalities that may arise as new capital rules, known as Basel II, are implemented for the most complex internationally active banking organizations.
The modifications that the Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Office of Thrift Supervision are considering would apply to banks, bank holding companies, and savings associations. They will be set forth in an advanced notice of proposed rulemaking to be published shortly in the Federal Register. Comment is requested within ninety days of publication.
In considering possible revisions, the agencies are seeking to enhance risk sensitivity without undue complexity or regulatory burden.
Specifically, the agencies are soliciting comment on:
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Last update: October 6, 2005