OCC 2003-44
OCC Bulletin
Subject: Proposed Revisions to Risk-Based Capital
Regulations Implementing the New Basel Capital Accord
Description: Proposed Treatment of Expected and
Unexpected Loss
Date: October 29, 2003

TO:	Chief Executive Officers of All National Banks,
Federal Branches and Agencies, Department and Division
Heads,and All Examining Personnel


The U.S. banking agencies (Office of the Comptroller of
the Currency, Federal Reserve Board, Federal Deposit
Insurance Corporation, and Office of Thrift Supervision)
are currently seeking comment on a proposed framework for
implementing the New Basel Capital Accord in the United
States through an advance notice of proposed rulemaking
(ANPR).  This bulletin transmits a notice describing how
interested parties can avail themselves of an additional
comment process on this proposed framework.  This new
comment process seeks specific public comment on the
treatment of expected and unexpected losses in the
internal ratings-based (IRB) approach to credit risk.  

As the attached interagency statement indicates, interested
persons are encouraged to review and comment on both the ANPR
and the attached document.  The agencies will seek comment
on the ANPR through November 3, 2003.  The agencies will
also consider comments on the proposed treatment of expected
and unexpected losses received through December 31, 2003,
whether those comments are received directly by the agencies
or by the Basel Committee on Banking Supervision.  


__________________________________
Emory W. Rushton
Senior Deputy Comptroller and Chief National Bank Examiner

Attachment: Proposed Treatment of Expected and Unexpected Losses