Risk-Based Capital Rules Notice of Proposed Rulemaking on Modifications to the Risk-Based Capital Framework (Basel IA)

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.

Distribution:
FDIC-Supervised Banks (Commercial and Savings)

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

• "Key Aspects of the Proposed Rule on Modifications to the Risk-Based Capital Framework" - PDF 27k ( PDF Help )
• Notice of Proposed Rulemaking, Risk-Based Capital Guidelines; Capital Adequacy Guidelines; Capital Maintenance: Domestic Capital Modifications - PDF 552k ( PDF Help )

Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2006/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

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).