OCC BULLETIN 2014-38
Subject: Regulatory Capital - Revisions to the Risk-Based Capital Definition of Eligible Guarantee for Advanced Approaches Banks
Date: August 5, 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: Final Rule
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation have published a final rule that revises 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 final rule modifies 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 rule was published in the Federal Register on July 30, 2014.
You may direct questions to Roger Tufts, Senior Economic Advisor, Capital Policy Division, at (202) 649-6370.
Jennifer C. Kelly
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.