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Basel II Capital Accord
Notice of Proposed Rulemaking (NPR)
Proposed Regulatory Text
September 5, 2006 Skip repetitive navigation

Adoption of Common Appendix--Agency-Specific Text
Signature Pages
Text of Common Appendix (All Agencies)

The text of the agencies' common appendix appears below:

[Appendix __ to Part __] Capital Adequacy Guidelines for [Bank]s:1  Internal-Ratings-Based and Advanced Measurement Approaches

Part I       General Provisions
Section 1
Purpose, Applicability, and Reservation of Authority
Section 2
Section 3
Minimum Risk-Based Capital Requirements

Part II      Qualifying Capital
Section 11
Additional Deductions
Section 12
Deductions and Limitations Not Required
Section 13
Eligible Credit Reserves

Part III     Qualification
Section 21
Qualification Process
Section 22
Qualification Requirements
Section 23
Ongoing Qualification

Part IV     Risk-Weighted Assets for General Credit Risk
Section 31
Mechanics for Calculating Total Wholesale and Retail Risk-Weighted Assets
Section 32
Counterparty Credit Risk
Section 33
Guarantees and Credit Derivatives: PD Substitution and LGD Adjustment Treatments
Section 34
Guarantees and Credit Derivatives: Double Default Treatment
Section 35
Risk-Based Capital Requirement for Unsettled Transactions

Part V       Risk-Weighted Assets for Securitization Exposures
Section 41
Operational Criteria for Recognizing the Transfer of Risk
Section 42
Risk-Based Capital Requirement for Securitization Exposures
Section 43
Ratings-Based Approach (RBA)
Section 44
Internal Assessment Approach (IAA)
Section 45
Supervisory Formula Approach (SFA)
Section 46
Recognition of Credit Risk Mitigants for Securitization Exposures
Section 47
Risk-Based Capital Requirement for Early Amortization Provisions

Part VI     Risk-Weighted Assets for Equity Exposures
Section 51
Introduction and Exposure Measurement
Section 52
Simple Risk Weight Approach (SRWA)
Section 53
Internal Models Approach (IMA)
Section 54
Equity Exposures to Investment Funds
Section 55
Equity Derivative Contracts

Part VII    Risk-Weighted Assets for Operational Risk
Section 61
Qualification Requirements for Incorporation of Operational Risk Mitigants
Section 62
Mechanics of Risk-Weighted Asset Calculation

Part VIII   Disclosure
Section 71
Disclosure Requirements


  1. For simplicity, and unless otherwise noted, this NPR uses the term [bank] to include banks, savings associations, and bank holding companies. [AGENCY] refers to the primary Federal supervisor of the bank applying the rule.  Return to text