WASHINGTON
Comptroller of the Currency John C. Dugan approved today an advance notice of
proposed rule making (ANPR) seeking public comment on a proposal intended to
improve risk-based capital rules for U.S. institutions without the expense and complexity
of the Basel II framework.
The U.S. banking
agencies plan to address implementation of the Basel II framework in a separate
rulemaking.
Our primary goal is to
increase the risk sensitivity of our domestic risk-based capital rules without
unduly increasing regulatory burden, Comptroller Dugan said. This is no small challenge and we cannot
easily accomplish that goal without substantial input from the banking industry
and other interested parties.
Current risk-based
capital rules are the same for all banks.
The OCC has heard concern voiced by a number of banks and industry
groups that banks operating under Basel II might gain a competitive edge over
banks that would not be governed by the Basel II framework.
It is almost a
certainty that the level of risk sensitivity we hope to achieve under Basel II
is not possible in a simpler risk-based capital regime, Mr. Dugan said. However, we need to be very mindful of
competitive equity issues, and we will endeavor to reduce gaps between the two
frameworks as much as possible given our overarching
priority to ensure that both frameworks move in the direction of greater risk
sensitivity.
The improvements, which
are also being considered by the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, and the Office of Thrift
Supervision, would apply to banks, bank holding companies and savings
associations. The ANPR will be
published shortly in the Federal Register and comments are requested within 90
days of publication.
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The Office of the
Comptroller of the Currency was created by Congress to charter national banks,
to oversee a nationwide system of banking institutions, and to assure that
national banks are safe and sound, competitive and profitable, and capable of
serving in the best possible manner the banking needs of their customers.