OCC BULLETIN 2014-38
Regulatory Capital-Revisions to the Risk-Based Capital Definition of Eligible Guarantee for Advanced Approaches Banks
To: Chief Executive Officers of National Banks and Federal Savings Associations,
Description: Final Rule
- The modified definition of eligible guarantee applies to all banking organizations subject to the advanced approaches rules.
- The final rule expands the set of recognized guarantors to that which existed under the 2007 advanced-approaches final rule (Basel II). *2 (#ftn2" name="ftn2) For example, the commercial real estate exposures of advanced-approaches banking organizations are often "guaranteed" by counterparties that do not meet the definition of "eligible guarantor" as it was revised under the Basel III final rule (e.g., they do not have rated debt, are not depository institutions, etc.). Under this final rule, those guarantors, which provide credit enhancement, will again qualify as credit risk mitigants.
- The final rule does not revise the definition of eligible guarantee for the standardized approach risk-based capital rules.
See original table at: http://www.occ.gov/news-issuances/bulletins/2014/bulletin-2014-38.html
You may direct questions to
Senior Deputy Comptroller and Chief National
*1 Advanced-approaches banking organizations generally include those with
- "Regulatory Capital Rules: Advanced Approaches Risk-Based Capital Rule, Revisions to the Definition of Eligible Guarantee" (http://www.gpo.gov/fdsys/pkg/FR-2014-07-30/pdf/2014-17858.pdf)
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