Summary

GAO reviewed the Department of the Treasury, Office of the Comptroller of the Currency, Federal Reserve System, Federal Deposit Insurance Corporation, and the Department of the Treasury, Office of Thrift Supervision's new rule on advanced capital adequacy framework--Basel II. GAO found that (1) the rule implements a new risk-based regulatory framework, and describes the qualifying criteria for banks required or seeking to operate under the new framework and the applicable risk-based capital requirements for banks that operate under the new framework; and (2) the agencies complied with the applicable requirements in promulgating the rule.