OCC 2004-17
OCC Bulletin
Subject: Regulatory Capital - Asset-Backed
Commercial Paper Programs
Description: Interim Final Rule
Date: April 28, 2004

TO: Chief Executive Officers of National Banks,
Department and Division Heads, All Examining Personnel,
and Other Interested Parties


PURPOSE

This bulletin transmits an interagency interim final
rule on asset-backed commercial paper programs published
in the Federal Register on April 26.  The interim final
rule extends the effective date of a previously issued
interim final rule published on October 1, 2003
(see OCC Bulletin 2003-42). 

SUMMARY

This interim final rule extends the effective date of
a previously published interim final rule that amended
the risk-based capital standards for the treatment of
assets in asset-backed commercial paper (ABCP) programs
consolidated under the Financial Accounting Standards
Board Interpretation No. 46, "Consolidation of Variable
Interest Entities" (FIN 46).  The previously issued
interim final rule was published on October 1, 2003
and expired on April 1, 2004.
 
Under this interim final rule extension, sponsoring 
banking organizations may continue to remove ABCP
program assets consolidated under FIN 46 from their
risk-weighted asset base for purposes of calculating
their risk-based capital ratios.  However, sponsoring
banking organizations must continue to include any
other exposures they have to these programs, such as
credit enhancements, in risk-weighted assets.  The
interim rule extension will be in effect through July
1, 2004.

The risk-based capital treatment set forth in the
interim rule extension does not alter the accounting
rules for balance sheet consolidation as set forth 
under generally accepted accounting principles. 
Consequently, banking organizations must continue
to include consolidated ABCP program assets in their
tier 1 leverage ratio calculation.

FOR FURTHER INFORMATION CONTACT:

Amrit Sekhon, risk expert, Capital Policy Division,
at (202) 874-5211; or Ron Shimabukuro, special counsel,
or Laura Goldman, counsel, Legislative and Regulatory
Activities Division, at (202) 874-5090.

___________________________
Tommy Snow
Director, Capital Policy

Attachment - Interim Final Rule
[http://www.occ.treas.gov/fr/fedregister/69fr22382.pdf]