Risk-Based Capital Standards: Advanced Capital Adequacy Framework, 77518-77519 [06-9737]
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77518
Federal Register / Vol. 71, No. 247 / Tuesday, December 26, 2006 / Proposed Rules
TABLE 7.—EARLY AMORTIZATION
CREDIT CONVERSION FACTORS—
Continued
Excess spread trapping point
ratio
CCF
(percent)
Less than 75 percent to 50 percent of trapping point ............
Less than 50 percent of trapping point ..............................
50
100
6. In § 567.11, revise paragraph (c)(2),
redesignate paragraph (c)(3) as
paragraph (c)(4) and add new paragraph
(c)(3) to read as follows:
§ 567.11
Dated: December, 11, 2006.
By the Office of Thrift Supervision
John Reich,
Director.
[FR Doc. 06–9738 Filed 12–22–06; 8:45 am]
BILLING CODE 4810–33–P(25%); 6210–01–P(25%); 6714–
01–P(25%); 6720–01–P(25%)
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Reservation of authority.
*
*
*
*
*
(c) * * *
(2) Notwithstanding §§ 567.6 and
567.7 of this part, OTS will look to the
substance of a transaction and may find
that the assigned risk-weight for any
asset, or credit equivalent amount or
credit conversion factor for any offbalance sheet item does not
appropriately reflect the risks imposed
on the savings association. OTS may
require the savings association to apply
another risk weight, credit equivalent
amount, or credit conversion factor that
the OTS deems appropriate. Similarly,
OTS may override the use of certain
ratings or ratings on certain instruments,
if necessary or appropriate to reflect the
risk that that an instrument poses to a
savings association.
(3) OTS may require a savings
association to use § 567.6 or § 567.7 of
this part to compute risk-weighted
assets, if OTS determines that the riskweighted capital requirement computed
under that section is more appropriate
for the risk profile of the savings
association or would otherwise enhance
the safety and soundness of the savings
association. In making a determination
under this paragraph (c)(3), OTS will
apply notice and response procedures in
the same manner and to the same extent
as the notice procedures in 12 CFR
567.3(d).
*
*
*
*
*
Dated: December 12, 2006.
John C. Dugan,
Comptroller of the Currency.
sroberts on PROD1PC70 with PROPOSALS
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
By order of the Board of Governors of the
Federal Reserve System, December 8, 2006.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, D.C., this 5th Day of
December, 2006.
By order of the Board of Directors.
VerDate Aug<31>2005
16:17 Dec 22, 2006
Jkt 211001
12 CFR Part 3
[Docket No. 06–09]
RIN 1557–AC91
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 225
[Regulations H and Y; Docket No. R–1261]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 325
RIN 3064–AC73
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 566
[Docket No. 2006–33]
RIN 1550–AB56
Risk-Based Capital Standards:
Advanced Capital Adequacy
Framework
AGENCIES: Office of the Comptroller of
the Currency, Treasury; Board of
Governors of the Federal Reserve
System; Federal Deposit Insurance
Corporation; and Office of Thrift
Supervision, Treasury.
ACTION: Joint notice of proposed
rulemaking; extension of comment
period.
SUMMARY: On September 25, 2006, the
Office of the Comptroller of the
Currency (OCC), the Board of Governors
of the Federal Reserve System (Board),
the Federal Deposit Insurance
Corporation (FDIC), and the Office of
Thrift Supervision (OTS) (collectively,
the agencies) issued a joint notice of
proposed rulemaking for public
comment that proposed a new riskbased capital adequacy framework
(Basel II NPR). The Basel II NPR would
PO 00000
Frm 00074
Fmt 4701
Sfmt 4702
require some and permit other
qualifying banks 1 to use an internal
ratings-based approach to calculate
regulatory credit risk capital
requirements and advanced
measurement approaches to calculate
regulatory operational risk capital
requirements. The Basel II NPR
describes the qualifying criteria for
banks required or seeking to operate
under the proposed framework and the
applicable risk-based capital
requirements for banks that operate
under the framework. The Basel II NPR
comment period will end on January 23,
2007.
In today’s issue of the Federal
Register, the agencies are proposing
revisions to the existing risk-based
capital framework that would apply to
banks that do not use the Basel II NPR
(Basel IA NPR). The agencies have
determined that an extension of the
Basel II NPR comment period is
appropriate to allow interested parties
additional time to compare the riskbased capital requirements as proposed
in the Basel II NPR with the risk-based
capital requirements as proposed in the
Basel IA NPR.
DATES: The comment period for the
proposed rule published at 71 FR 55830
(Sept. 25, 2006) is extended until March
26, 2007.
ADDRESSES: You may submit comments
by any of the methods identified in the
Basel II NPR (See 71 FR 55830,
September 25, 2006.)
FOR FURTHER INFORMATION CONTACT:
OCC: Roger Tufts, Senior Economic
Advisor, Capital Policy (202–874–4925)
or Ron Shimabukuro, Special Counsel,
Legislative and Regulatory Activities
Division (202–874–5090). Office of the
Comptroller of the Currency, 250 E
Street, SW., Washington, DC 20219.
Board: Barbara Bouchard, Deputy
Associate Director (202–452–3072 or
barbara.bouchard@frb.gov) or Anna Lee
Hewko, Senior Supervisory Financial
Analyst (202–530–6260 or
anna.hewko@frb.gov), Division of
Banking Supervision and Regulation; or
Mark E. Van Der Weide, Senior Counsel
(202–452–2263 or
mark.vanderweide@frb.gov), Legal
Division. For users of
Telecommunications Device for the Deaf
(‘‘TDD’’) only, contact 202–263–4869.
FDIC: Jason C. Cave, Associate
Director, Capital Markets Branch, (202)
898–3548, Bobby R. Bean, Chief, Policy
Section, Capital Markets Branch, (202)
898–3575, Kenton Fox, Senior Capital
Markets Specialist, Capital Markets
1 As used in this notice, the term ‘‘bank’’ includes
banks, savings associations, and bank holding
companies.
E:\FR\FM\26DEP2.SGM
26DEP2
Federal Register / Vol. 71, No. 247 / Tuesday, December 26, 2006 / Proposed Rules
Branch, (202) 898–7119, Division of
Supervision and Consumer Protection;
or Michael B. Phillips, Counsel, (202)
898–3581, Supervision and Legislation
Branch, Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street,
NW., Washington, DC 20429.
OTS: Michael D. Solomon, Director,
Capital Policy, Supervision Policy (202)
906–5654; David W. Riley, Senior
Analyst, Capital Policy (202) 906–6669;
or Karen Osterloh, Special Counsel,
Regulations and Legislation Division
(202) 906–6639, Office of Thrift
Supervision, 1700 G Street, NW.,
Washington, DC 20552.
On
September 25, 2006, the agencies issued
the Basel II NPR, which proposed a new
risk-based capital adequacy framework
that would require some and permit
other qualifying banks to use an internal
ratings-based approach to calculate
regulatory credit risk capital
requirements and advanced
measurement approaches to calculate
regulatory operational risk capital
sroberts on PROD1PC70 with PROPOSALS
SUPPLEMENTARY INFORMATION:
VerDate Aug<31>2005
16:17 Dec 22, 2006
Jkt 211001
requirements. See 71 FR 55830. The
proposed rule describes the qualifying
criteria for banks required or seeking to
operate under the proposed framework
and the applicable risk-based capital
requirements for banks that would
operate under that framework.
In today’s issue of the Federal
Register, the agencies are proposing
revisions to the existing risk-based
capital framework applicable to banks
that would not use the Basel II NPR. The
Basel IA NPR proposes to expand the
number of risk weight categories, allow
the use of external credit ratings to risk
weight certain exposures, expand the
range of recognized collateral and
eligible guarantors, use loan-to-value
ratios to risk weight most residential
mortgages, and revise other provisions
of the existing risk-based capital
requirements to increase the risk
sensitivity of the risk-based capital rules
for those banks that will not use the
proposed risk-based capital
requirements in the Basel II NPR.
The agencies believe that it is
important for interested parties to be
PO 00000
Frm 00075
Fmt 4701
Sfmt 4702
77519
able to compare the risk-based capital
requirements in the Basel II NPR and
Basel IA NPR. Therefore, the agencies
are extending the comment period for
the Basel II NPR from January 23, 2007,
to March 26, 2007.
Dated: December 5, 2006.
John C. Dugan,
Comptroller of the Currency.
Dated: December 8, 2006.
By order of the Board of Governors of the
Federal Reserve System.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, this 5th day of
December, 2006.
By order of the Board of Directors,
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
Dated: December 11, 2006.
John Reich,
Director.
[FR Doc. 06–9737 Filed 12–22–06; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P;
6720–01–P
E:\FR\FM\26DEP2.SGM
26DEP2
]]>Agencies
[Federal Register Volume 71, Number 247 (Tuesday, December 26, 2006)]
[Proposed Rules]
[Pages 77518-77519]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-9737]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 3
[Docket No. 06-09]
RIN 1557-AC91
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 225
[Regulations H and Y; Docket No. R-1261]
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 325
RIN 3064-AC73
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 566
[Docket No. 2006-33]
RIN 1550-AB56
Risk-Based Capital Standards: Advanced Capital Adequacy Framework
AGENCIES: Office of the Comptroller of the Currency, Treasury; Board of
Governors of the Federal Reserve System; Federal Deposit Insurance
Corporation; and Office of Thrift Supervision, Treasury.
ACTION: Joint notice of proposed rulemaking; extension of comment
period.
-----------------------------------------------------------------------
SUMMARY: On September 25, 2006, the Office of the Comptroller of the
Currency (OCC), the Board of Governors of the Federal Reserve System
(Board), the Federal Deposit Insurance Corporation (FDIC), and the
Office of Thrift Supervision (OTS) (collectively, the agencies) issued
a joint notice of proposed rulemaking for public comment that proposed
a new risk-based capital adequacy framework (Basel II NPR). The Basel
II NPR would require some and permit other qualifying banks \1\ to use
an internal ratings-based approach to calculate regulatory credit risk
capital requirements and advanced measurement approaches to calculate
regulatory operational risk capital requirements. The Basel II NPR
describes the qualifying criteria for banks required or seeking to
operate under the proposed framework and the applicable risk-based
capital requirements for banks that operate under the framework. The
Basel II NPR comment period will end on January 23, 2007.
---------------------------------------------------------------------------
\1\ As used in this notice, the term ``bank'' includes banks,
savings associations, and bank holding companies.
---------------------------------------------------------------------------
In today's issue of the Federal Register, the agencies are
proposing revisions to the existing risk-based capital framework that
would apply to banks that do not use the Basel II NPR (Basel IA NPR).
The agencies have determined that an extension of the Basel II NPR
comment period is appropriate to allow interested parties additional
time to compare the risk-based capital requirements as proposed in the
Basel II NPR with the risk-based capital requirements as proposed in
the Basel IA NPR.
DATES: The comment period for the proposed rule published at 71 FR
55830 (Sept. 25, 2006) is extended until March 26, 2007.
ADDRESSES: You may submit comments by any of the methods identified in
the Basel II NPR (See 71 FR 55830, September 25, 2006.)
FOR FURTHER INFORMATION CONTACT: OCC: Roger Tufts, Senior Economic
Advisor, Capital Policy (202-874-4925) or Ron Shimabukuro, Special
Counsel, Legislative and Regulatory Activities Division (202-874-5090).
Office of the Comptroller of the Currency, 250 E Street, SW.,
Washington, DC 20219.
Board: Barbara Bouchard, Deputy Associate Director (202-452-3072 or
barbara.bouchard@frb.gov) or Anna Lee Hewko, Senior Supervisory
Financial Analyst (202-530-6260 or anna.hewko@frb.gov), Division of
Banking Supervision and Regulation; or Mark E. Van Der Weide, Senior
Counsel (202-452-2263 or mark.vanderweide@frb.gov), Legal Division. For
users of Telecommunications Device for the Deaf (``TDD'') only, contact
202-263-4869.
FDIC: Jason C. Cave, Associate Director, Capital Markets Branch,
(202) 898-3548, Bobby R. Bean, Chief, Policy Section, Capital Markets
Branch, (202) 898-3575, Kenton Fox, Senior Capital Markets Specialist,
Capital Markets
[[Page 77519]]
Branch, (202) 898-7119, Division of Supervision and Consumer
Protection; or Michael B. Phillips, Counsel, (202) 898-3581,
Supervision and Legislation Branch, Legal Division, Federal Deposit
Insurance Corporation, 550 17th Street, NW., Washington, DC 20429.
OTS: Michael D. Solomon, Director, Capital Policy, Supervision
Policy (202) 906-5654; David W. Riley, Senior Analyst, Capital Policy
(202) 906-6669; or Karen Osterloh, Special Counsel, Regulations and
Legislation Division (202) 906-6639, Office of Thrift Supervision, 1700
G Street, NW., Washington, DC 20552.
SUPPLEMENTARY INFORMATION: On September 25, 2006, the agencies issued
the Basel II NPR, which proposed a new risk-based capital adequacy
framework that would require some and permit other qualifying banks to
use an internal ratings-based approach to calculate regulatory credit
risk capital requirements and advanced measurement approaches to
calculate regulatory operational risk capital requirements. See 71 FR
55830. The proposed rule describes the qualifying criteria for banks
required or seeking to operate under the proposed framework and the
applicable risk-based capital requirements for banks that would operate
under that framework.
In today's issue of the Federal Register, the agencies are
proposing revisions to the existing risk-based capital framework
applicable to banks that would not use the Basel II NPR. The Basel IA
NPR proposes to expand the number of risk weight categories, allow the
use of external credit ratings to risk weight certain exposures, expand
the range of recognized collateral and eligible guarantors, use loan-
to-value ratios to risk weight most residential mortgages, and revise
other provisions of the existing risk-based capital requirements to
increase the risk sensitivity of the risk-based capital rules for those
banks that will not use the proposed risk-based capital requirements in
the Basel II NPR.
The agencies believe that it is important for interested parties to
be able to compare the risk-based capital requirements in the Basel II
NPR and Basel IA NPR. Therefore, the agencies are extending the comment
period for the Basel II NPR from January 23, 2007, to March 26, 2007.
Dated: December 5, 2006.
John C. Dugan,
Comptroller of the Currency.
Dated: December 8, 2006.
By order of the Board of Governors of the Federal Reserve
System.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, this 5th day of December, 2006.
By order of the Board of Directors,
Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
Dated: December 11, 2006.
John Reich,
Director.
[FR Doc. 06-9737 Filed 12-22-06; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P; 6720-01-P
