- Supplements the "Final Rule on Capital Requirements for Asset-Backed
Commercial Paper Programs" issued on July 28, 2004 (see FIL-87-2004).
- Provides clarification on the application of the asset quality test for
determining the eligibility or ineligibility of an ABCP liquidity
facility and the resulting risk-based capital treatment for banks that
provide liquidity facilities.
- Provides the agencies' determination of the forms of credit enhancements
that are acceptable for mitigating credit risk that would otherwise be
assumed by a liquidity facility for purposes of satisfying the asset
- Allows banks that meet the criteria set forth in the final rule or in
this guidance to continue to apply a credit conversion factor of 10
percent for short-term liquidity facilities and 50 percent for long-term
liquidity facilities. Banks that fail to meet either the criteria set
forth in the final rule or in this guidance will be required to apply a
100 percent credit conversion factor on the liquidity facility starting
with the reporting period ending September 30, 2005.
- Generally applies to large banks that provide liquidity facilities to
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
Risk-Based Capital Rules – Part 325
Interagency Guidance on the Eligibility of Asset-Backed Commercial
Paper Liquidity Facilities and the Resulting Risk-Based Capital
Interagency Guidance on the
Eligibility of Asset-Backed Commercial Paper Liquidity
Facilities and the Resulting Risk-Based Capital Treatment -
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Cave, Chief, Capital Markets Policy Section, at email@example.com or (202) 898-3548.
Bobby R. Bean, Senior Quantitative Risk Analyst, at firstname.lastname@example.org or (202) 898-3575.
Financial Institution Letters (FILs) may be accessed from the FDIC's Web
site at www.fdic.gov/news/news/financial/2005/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC FILs may be obtained through the FDIC's Public
Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434
(1-877-275-3342 or (703) 562-2200).