The federal bank
and thrift regulatory agencies announced today the publication of a joint Federal Register notice and request for
comment on proposed guidance for Internal
Ratings-Based Systems for Retail Credit Risk for Regulatory Capital. The proposed guidance provides banking
organizations with a description of the agencies’ current views regarding the
components and characteristics of a qualifying internal ratings-based (IRB)
system for measuring credit risk of retail exposures. Retail exposures include various types of consumer credit such as
residential mortgages, consumer credit cards, and automobile and personal loans
as well as some small business loans.
The proposed retail guidance, like the August
4, 2003, proposed corporate IRB guidance and the Advanced Measurement
Approaches for operational risk guidance, includes a number of supervisory
standards that ultimately may become part of the qualification criteria for IRB
systems in a future interagency notice of proposed rulemaking regarding the
Basel II framework in the United States.
Comments on the proposed guidance are
requested by January 25, 2005. Specific information on how to file a comment is
contained in the Federal Register
notice.
OCC Kevin Mukri (202) 874-5770
OTS Erin
Hickman (202) 906-6677