Circular
Comments Requested on Proposed Supervisory Guidance for Basel II
February 20, 2007
Circular No. 11844

The federal bank and thrift regulatory agencies have announced that they will seek public comment on three proposed supervisory guidance documents related to the September 2006 notice of proposed rulemaking on new risk-based capital requirements in the United States for large, internationally active banking organizations. 

Two of the proposed documents relate to the Basel II advanced approaches for calculating risk-based capital requirements: the advanced internal ratings-based approach for credit risk and the advanced measurement approaches for operational risk. These guidance documents have been updated since they were previously issued for public comment in 2003 and 2004. The third document proposes guidance on the Basel II supervisory review process for assessing capital adequacy and is being issued for the first time.

The proposed supervisory guidance documents are being issued by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision.

See the press release for full details.

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