[November 9, 1998 (Volume 63, Number 216)]
[Unified Agenda]
From the Federal Register Online via GPO Access [frwais.access.gpo.gov]
[DOCID:ua09no98_052-9]

[Page 62701]
 
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)           Final Rule Stage

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4451. CAPITAL MAINTENANCE--RECOURSE ARRANGEMENTS AND DIRECT CREDIT 
SUBSTITUTES




Priority:  Substantive, Nonsignificant

Legal Authority:  12 USC 1815; 12 USC 1816; 12 USC 1818; 12 USC 1819; 
12 USC 1828; 12 USC 1831; 12 USC 3907; 12 USC 3909

CFR Citation:  12 CFR 325

Legal Deadline: None

Abstract: The FDIC, the FRS, the OCC, and the OTS (Agencies) are 
revising their risk-based capital standards to address the regulatory 
capital treatment of recourse arrangements and direct credit 
substitutes that expose banks, bank holding companies, and thrifts to 
credit risk. One portion of the NPRM addressing the risk-based capital 
treatment of low-level recourse transactions is required to be 
published as a separate final rule by CDRI.
In addition, the Agencies published, in an ANPRM, a preliminary 
proposal to use credit ratings to match the risk-based capital 
assessment more closely to an institution's relative risk of loss in 
certain asset securitizations. The Agencies are also seeking comment on 
the need for a similar system for unrated asset securitizations and on 
how such a system would be designed. The Agencies intend that any final 
rules adopted in connection with these regulatory actions that result 
in increased risk-based capital requirements would apply only to 
transactions that are consummated after the effective dates of such 
final rules.
A second NPRM combining the issues raised in the ANPRM on credit 
ratings, and the NPRM on recourse and direct credit substitutes was 
published in November 1997 (62 FR 59944).

Timetable:
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Action                            Date                      FR Cite

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Final Action                    01/00/99
Credit Ratings  ANPRM 05/25/94 (59 FR 27116)

Recourse/Direct Credit Substitutes  NPRM 05/25/94 (59 FR 27116)

Synthesis of Credit Ratings/Recourse/Direct Credit Substitutes  NPRM 
11/05/97 (62 FR 59944)

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Robert F. Storch, Chief, Accounting Section, Division 
of Supervision, Federal Deposit Insurance Corporation, Washington, DC 
20429
Phone: 202 898-8906

RIN: 3064-AB31
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Last Updated 04/25/1997 regs@fdic.gov