Guidance on Advanced Approaches 2014-2: Guidance Relating to Notifications of Material Changes to Advanced Systems and Modeling Changes

Summary

The Guidance on Advanced Approaches (GAA Series) addresses technical matters relating to the implementation of the advanced approaches risk-based capital rule.

This guidance summarizes supervisory expectations for when and how a banking organization should notify supervisors of material changes to its advanced systems or modeling assumptions (referred to as "model changes") under the advanced approaches risk-based capital rule (rule). This guidance applies to all model changes that could have a material impact on risk-weighted assets (RWA) for the overall banking organization or for any exposure type. Staff members at the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System (Board) worked closely to develop this guidance.