Regulatory Capital Rules: Standardized Approach for Risk-Weighted Assets, Market Discipline and Disclosure Requirements
June 19 - The federal bank regulatory agencies have jointly issued a notice of proposed rulemaking that would revise the measurement of risk-weighted assets by implementing changes made by the Basel Committee on Banking Supervision to international regulatory capital standards and by implementing aspects of the Dodd-Frank Act.
The proposed rule:
- Revises risk weights for exposures to foreign sovereign entities, foreign banking organizations, and foreign public sector entities.
- Revises risk weights for residential mortgages based on loan-to-value ratios and certain product and underwriting features.
- Increases capital requirements for past-due loans, high volatility commercial real estate exposures, and certain short-term loan commitments.
- Expands the recognition of collateral and guarantors in determining risk-weighted assets.
- Removes references to credit ratings consistent with Section 939A of the Dodd-Frank Act.
- Establishes due diligence requirements for securitization exposures.
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