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OCC BULLETIN 2014-20
Subject: Regulatory Capital - Proposed Revisions to the Risk-Based Capital Definition of Eligible Guarantee for Advanced Approaches Banks
Date: May 1, 2014
To: Chief Executive Officers of National Banks and Federal Savings Associations, All Department and Division Heads, All Examining Personnel, and Other Interested Parties
Description: Notice of Proposed Rulemaking
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are seeking comment on a notice of proposed rulemaking (NPR) that would revise the advanced approaches1 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 NPR 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 June 13, 2014.
You may direct questions or comments to Margot Schwadron, Senior Risk Expert, Capital Policy Division, at (202) 649-6982.
John C. Lyons Jr.
1 Advanced-approaches banking organizations generally include those with $250 billion or more in total consolidated assets or $10 billion or more in on-balance-sheet foreign exposure; other banking organizations that opt in to the advanced approaches; and depository institution subsidiaries of banking organizations that trigger one of the aforementioned thresholds.