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Financial Institution Letter
Risk-Based Capital Rules Notice of Proposed Rulemaking on Modifications to the Risk-Based Capital Framework (Basel IA)
Summary: The federal bank and thrift regulatory agencies have jointly issued the attached Notice of Proposed Rulemaking (NPR) and are seeking comment on possible modifications to the risk-based capital standards for all domestic banks, bank holding companies and savings associations that are not subject to the risk-based capital framework proposed in the Basel II NPR. The FDIC will accept comments on the NPR through March 26, 2007.


The modifications under consideration in the NPR are intended to:

  • Modernize the risk-based capital rules to ensure that the capital framework remains a relevant and reliable measure of risks present in the banking system.
  • Mitigate, to the extent possible, potentially material differences in capital requirements that may arise between banks that adopt Basel II and those banks that remain under the existing risk-based capital rules.
  • Maintain an operationally feasible capital framework that is relatively simple to implement for banking organizations subject to the existing risk-based capital rules.

A banking organization would be able to elect to adopt the modifications or remain subject to the agencies' existing risk-based capital rules.

The NPR includes a series of questions to solicit further comment on possible alternatives to the advanced approaches set forth in the Basel II NPR for determining risk-based capital requirements for large U.S. banking organizations.

FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer

FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at .

To receive FILs electronically, please visit .

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

Additional Related Topics:

  • Risk-Based Capital Rules
  • 12 CFR Part 325
  • Basel II
Last Updated: December 26, 2006