FDIC Federal Register Citations

[April 26, 1999 (Volume 64, Number 77)]

[Unified Agenda]

From the Federal Register Online via GPO Access [frwais.access.gpo.gov]

[DOCID:ua26ap99_053-6]

[Page 22316]

Part LV

Federal Deposit Insurance Corporation

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FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) Final Rule Stage

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4230. 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 05/00/99

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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