Financial Update (Fourth Quarter 2006)
Federal bank and thrift regulatory agencies are requesting public comment on a notice of proposed rulemaking
|The proposed revisions would enhance the rules' sensitivity to risk.|
The proposed revisions would enhance the rules' sensitivity to risk and would require public disclosures of certain qualitative and quantitative market risk information.
New guidelines would supersede Basel I
For banking organizations that meet the Basel II criteria, the new rules would replace those that implemented Basel I and would be mandatory for large, internationally active banking organizations and optional for others.
In March 2006, the Federal Reserve Board released a preliminary draft of the Basel II NPR. The final document is different from the March draft, but the final document should be used as the basis for comments.
Market risk rules also to receive comment
Separately, the agencies—the Federal Reserve Board, the Federal Deposit Insurance Corp. (FDIC), the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS)—announced that they will request comment on proposed revisions to the market risk capital rules that the OCC, the FDIC, and the Federal Reserve Board have used since 1997 for banking organizations with exposure to market risk.
The proposals were published in the Federal Register on Sept. 25, and the Board, the FDIC, the OCC, and the OTS request comments within 120 days of that date.