- The proposed guidance applies only to banking organizations that would implement the proposed Basel II framework.
- The proposed guidance highlights regulatory standards that are primarily principles-based to enable flexibility in implementation, with more direction provided in instances where prudential issues or industry standardization is of paramount importance.
- The proposed IRB guidance is intended to provide banks with a clear description of the essential components and characteristics of an acceptable IRB framework.
- The proposed AMA guidance identifies supervisory standards that banks should follow to implement and maintain an acceptable AMA framework for regulatory capital purposes.
- The proposed Pillar 2 guidance addresses the three fundamental objectives in the supervisory review process under Pillar 2: the comprehensive supervisory assessment of capital adequacy, a bank's compliance with regulatory capital requirements, and a bank's implementation of an internal capital adequacy assessment process (ICAAP).
- The publication of these documents should not be construed as the agencies' predisposition of the Basel II Notice of Proposed Rulemaking (NPR).
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Risk-Based Capital Rules
12 CFR Part 325
Proposed Supervisory Guidance on Internal Ratings-Based Systems for Credit Risk, Advanced Measurement Approaches for Operational Risk, and the Supervisory Review Process (Pillar 2) Related to Basel II Implementation - PDF 1,184k (PDF Help)
Pete Hirsch, Chief, Large Bank Supervision,
firstname.lastname@example.org or (202) 898-6751 (IRB)
Mark S. Schmidt, Regional Director,
email@example.com or (678) 916-2189 (AMA)
Bobby R. Bean, Chief, Capital Markets Policy
Section, firstname.lastname@example.org or (202) 898-3575
FIL-20-2007 - PDF 38k (PDF Help)
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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-