Circular
Board Releases Draft Interagency Notice of Proposed Rulemaking on Basel IA
December 5, 2006
Circular No. 11826

To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:

The Federal Reserve Board has released a draft interagency notice of proposed rulemaking that would revise the existing risk-based capital framework by giving the vast majority of banks, bank holding companies, and savings associations the option of either continuing to use the existing Basel I-based capital rule or adopting a more risk sensitive rule, known as Basel IA. However, as proposed, Basel IA would not be available to large, complex international banking organizations subject to the proposed Basel II advanced capital framework.

The Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) also are considering the notice of proposed rulemaking. The Board authorized the staff to publish the notice in the Federal Register for public comment after the other agencies complete their approval processes. For the OCC and OTS, that includes review by the Office of Management and Budget, which may result in changes to the notice of proposed rulemaking.

Read the press release and Board’s notice below for complete details.

Press release OFFSITE
Preamble OFFSITE PDF
Draft notice OFFSITE PDF

Public Information
general.info@ny.frb.org
(212) 720-6130