Federal Agencies Propose Revisions To The Risk-Based Capital Definition Of Eligible Guarantee For Advanced Approaches Banks

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The Federal Agencies announced a notice of proposed rulemaking that would revise the advanced approaches risk-based capital rules.
United States Finance and Banking

On 1 May 2014, the OCC, the Federal Reserve Board and the FDIC announced a notice of proposed rulemaking that would revise the advanced approaches risk-based capital rules by removing the requirement that only guarantees provided by certain counterparties are eligible for recognition as credit risk mitigants. Specifically, the notice of proposed rulemaking would modify the definition of "eligible guarantee" for purposes of the advanced approaches risk-based capital rules by removing the requirement that an eligible guarantee be provided by an "eligible guarantor" for all exposures other than securitization exposures. The comment period for the proposed rule ends on 13 June 2014.

The full text of the notice of proposed rulemaking is available at: http://www.gpo.gov/fdsys/pkg/FR-2014-05-01/pdf/2014-09452.pdf.

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