The four Federal banking agencies (the Office of the
Comptroller of the Currency, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, and the Office of Thrift
Supervision) today announced their revised plans for the U.S. implementation of
the International Convergence of Capital Measurement and Capital Standards: A
Revised Framework, otherwise known as Basel II. The agencies previously announced on April 29, 2005 that they
were delaying issuance of a notice of proposed rulemaking (NPR), pending
additional analysis of the quantitative impact study (QIS4) submissions. The agencies intend to move forward with an
NPR for domestic implementation of Basel II, but plan to introduce additional
prudential safeguards in the NPR to address concerns identified in the analysis
of the results of the QIS4 conducted with the industry. The agencies expect that the U.S. Basel II
proposal will be available in the first quarter of 2006.
The agencies Basel II implementation plan includes the
following elements:
The agencies expect to shortly publish for notice and
comment an advance notice of proposed rulemaking on possible modifications to
the risk-based capital rules for banks that do not become subject to Basel
II-based capital rules. The revised
transition schedule for the domestic implementation of the Basel II framework
will permit industry consideration of and public comment on these two rulemaking
initiatives along similar timeframes.
Media Contacts
Federal Reserve Dave
Skidmore (202) 452-2955
FDIC David Barr (202)
898-6634
OCC Kevin Mukri (202)
874-5770
OTS Kevin Petrasic (202) 906-6677