FDIC Federal Register Citations

[Page 65417]

Federal Deposit Insurance Corporation (FDIC) Final Rule Stage

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4420. 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 12/00/99
Credit Ratings ANPRM 05/25/1994 (59 FR 27116)

Recourse/Direct Credit Substitutes NPRM 05/25/1994 (59 FR
27116) Final Action 02/00/2000

Synthesis of Credit Ratings/Recourse/Direct Credit Substitutes NPRM
11/05/1997 (62 FR 59944)

Regulatory Flexibility Analysis Required: No

Small Entities Affected: 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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