[April 24, 2000 (Volume 65, Number 79)]
[Unified Agenda]
From the Federal Register Online via GPO Access [frwais.access.gpo.gov]
[DOCID:ua24ap00_052-2] [Page 23849]
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) Proposed Rule Stage
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4156. CAPITAL MAINTENANCE -- RECOURSE ARRANGEMENTS AND DIRECT CREDIT
SUBSTITUTES
Priority: Substantive, Nonsignificant
Legal Authority: 12 USC 1815(a); 12 USC 1815(b); 12 USC 1816; 12 USC
1818(a); 12 USC 1818(b); 12 USC 1818(c); 12 USC 1818(t); 12 USC
1819(Tenth); 12 USC 1828(d); 12 USC 1828(i); 12 USC 1828(n); 12 USC
1828(o); 12 USC 1831o; 12 USC 3907; 12 USC 3909; 12 USC 1835; 12 USC
4808; 12 USC 1828(c); PL 102-233; 105 Stat 1761; 105 Stat 1789; 105
Stat 1790; 105 Stat 2236
CFR Citation: 12 CFR 325
Legal Deadline: None
Abstract: This rulemaking is sponsored jointly by the OCC, the FRS, the
FDIC, and the OTS. The rulemaking revises risk-based capital standards
by addressing the regulatory capital treatment of recourse obligations
and direct credit substitutes that expose banks, bank holding
companies, and thrifts to credit risk. The revision treats recourse
obligations and direct credit substitutes more consistently than under
the agencies' current risk-based capital standards. In addition, the
revision allows the agencies to use credit ratings and certain
alternative approaches to match the risk-based capital requirement more
closely to a banking organization's relative risk of loss in asset
securitizations. The rulemaking also requires the sponsor of a
revolving credit securitization that involves an early amortization
feature to hold capital against the amount of assets under management,
i.e., the off balance sheet securitized receivables. The rulemaking is
intended to result in more consistent treatment of recourse obligations
and similar transactions among the agencies, more consistent risk-based
capital treatment for certain types of transactions involving similar
risk, and capital requirements that more closely reflect a banking
organization's relative exposure to credit risk.
Timetable:
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Credit Ratings ANPRM 05/25/94 (59 FR 27116)
Recourse/Direct Credit Substitutes NPRM 05/25/94 (59 FR 27116) Second
NPRM 03/08/00 (65 FR 12360) Second NPRM Comment Period End 06/00/00
Synthesis of Credit Ratings/Recourse/Direct Credit Substitutes NPRM
11/05/97 (62 FR 59944)
Regulatory Flexibility Analysis Required: No
Small Entities Affected: 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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