Tuesday,
December 26, 2006
Part II
Department of the
Treasury
Office of the Comptroller of the
Currency
12 CFR Part 3
Federal Reserve System
12 CFR Parts 208 and 225
Federal Deposit
Insurance Corporation
12 CFR Part 325
Department of the
Treasury
Office of Thrift Supervision
12 CFR Parts 566 and 567
Risk-Based Capital Guidelines; Capital
Adequacy Guidelines; Capital
Maintenance: Domestic Capital
Modifications; Proposed Rules and Notice
VerDate Aug<31>2005 16:17 Dec 22, 2006 Jkt 211001 PO 00000 Frm 00001 Fmt 4737 Sfmt 4737 E:\FR\FM\26DEP2.SGM 26DEP2
sroberts on PROD1PC70 with PROPOSALS
December 26, 2006
Part II
Department of the
Treasury
Office of the Comptroller of the
Currency
12 CFR Part 3
Federal Reserve System
12 CFR Parts 208 and 225
Federal Deposit
Insurance Corporation
12 CFR Part 325
Department of the
Treasury
Office of Thrift Supervision
12 CFR Parts 566 and 567
Risk-Based Capital Guidelines; Capital
Adequacy Guidelines; Capital
Maintenance: Domestic Capital
Modifications; Proposed Rules and Notice
VerDate Aug<31>2005 16:17 Dec 22, 2006 Jkt 211001 PO 00000 Frm 00001 Fmt 4737 Sfmt 4737 E:\FR\FM\26DEP2.SGM 26DEP2
sroberts on PROD1PC70 with PROPOSALS
77446 Federal Register / Vol. 71, No. 247 / Tuesday, December 26, 2006 / Proposed Rules
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket No. 06–15]
RIN 1557–AC95
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 225
[Regulations H and Y; Docket No. R–1238]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 325
RIN 3064–AC96
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 567
[No. 2006–49]
RIN 1550–AB98
Risk-Based Capital Guidelines; Capital
Adequacy Guidelines; Capital
Maintenance: Domestic Capital
Modifications
AGENCIES: Office of the Comptroller of
the Currency, Treasury; Board of
Governors of the Federal Reserve
System; Federal Deposit Insurance
Corporation; and Office of Thrift
Supervision, Treasury.
ACTION: Joint notice of proposed
rulemaking.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), Board of
Governors of the Federal Reserve
System (Board), Federal Deposit
Insurance Corporation (FDIC), and
Office of Thrift Supervision (OTS)
(collectively, the Agencies) are
proposing revisions to the existing risk-
based capital framework that would
enhance its risk sensitivity without
unduly increasing regulatory burden.
These changes would apply to banks,
bank holding companies, and savings
associations (banking organizations). A
banking organization would be able to
elect to adopt these proposed revisions
or remain subject to the Agencies’
existing risk-based capital rules, unless
it uses the Advanced Capital Adequacy
Framework proposed in the notice of
proposed rulemaking published on
September 25, 2006 (Basel II NPR).
In this notice of proposed rulemaking
(NPR or Basel IA), the Agencies are
proposing to expand the number of risk
weight categories, allow the use of
external credit ratings to risk weight
certain exposures, expand the range of
recognized collateral and eligible
guarantors, use loan-to-value ratios to
risk weight most residential mortgages,
increase the credit conversion factor for
certain commitments with an original
maturity of one year or less, assess a
charge for early amortizations in
securitizations of revolving exposures,
and remove the 50 percent limit on the
risk weight for certain derivative
transactions. A banking organization
would have to apply all the proposed
changes if it chose to use these
revisions.
Finally, in Section III of this NPR, the
Agencies seek further comment on
possible alternatives for implementing
the ‘‘International Convergence of
Capital Measurement and Capital
Standards: A Revised Framework’’
(Basel II) in the United States as
proposed in the Basel II NPR.
DATES: Comments on this joint notice of
proposed rulemaking must be received
by March 26, 2007.
ADDRESSES: Comments should be
directed to:
OCC: You should include OCC and
Docket Number 06–15 in your comment.
You may submit comments by any of
the following methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• OCC Web Site: http://
www.occ.treas.gov. Click on ‘‘Contact
the OCC,’’ scroll down and click on
‘‘Comments on Proposed Regulations.’’
• E-mail address:
regs.comments@occ.treas.gov.
• Fax: (202) 874–4448.
• Mail: Office of the Comptroller of
the Currency, 250 E Street, SW., Mail
Stop 1–5, Washington, DC 20219.
• Hand Delivery/Courier: 250 E
Street, SW., Attn: Public Information
Room, Mail Stop 1–5, Washington, DC
20219.
Instructions: All submissions received
must include the Agency name (OCC)
and docket number or Regulatory
Information Number (RIN) for this
notice of proposed rulemaking. In
general, OCC will enter all comments
received into the docket without
change, including any business or
personal information that you provide.
You may review comments and other
related materials by any of the following
methods:
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC’s Public
Information Room, 250 E Street, SW.,
Washington, DC. You can make an
appointment to inspect comments by
calling (202) 874–5043.
• Viewing Comments Electronically:
You may request e-mail or CD–ROM
copies of comments that the OCC has
received by contacting the OCC’s Public
Information Room at
regs.comments@occ.treas.gov.
• Docket: You may also request
available background documents and
project summaries using the methods
described above.
Board: You may submit comments,
identified by Docket No. R–1238, by any
of the following methods:
• Agency Web Site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
Include docket number in the subject
line of the message.
• FAX: (202) 452–3819 or (202) 452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper form in Room MP–500 of the
Board’s Martin Building (20th and C
Street, NW.) between 9 a.m. and 5 p.m.
on weekdays.
FDIC: You may submit by any of the
following methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Agency Web site: http://
www.FDIC.gov/regulations/laws/
federal/propose.html
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivered/Courier: The guard
station at the rear of the 550 17th Street
Building (located on F Street), on
business days between 7 a.m. and 5 p.m.
• E-mail: comments@FDIC.gov.
• Public Inspection: Comments may
be inspected and photocopied in the
FDIC Public Information Center, Room
VerDate Aug<31>2005 16:17 Dec 22, 2006 Jkt 211001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\26DEP2.SGM 26DEP2
sroberts on PROD1PC70 with PROPOSALS
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket No. 06–15]
RIN 1557–AC95
FEDERAL RESERVE SYSTEM
12 CFR Parts 208 and 225
[Regulations H and Y; Docket No. R–1238]
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 325
RIN 3064–AC96
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Part 567
[No. 2006–49]
RIN 1550–AB98
Risk-Based Capital Guidelines; Capital
Adequacy Guidelines; Capital
Maintenance: Domestic Capital
Modifications
AGENCIES: Office of the Comptroller of
the Currency, Treasury; Board of
Governors of the Federal Reserve
System; Federal Deposit Insurance
Corporation; and Office of Thrift
Supervision, Treasury.
ACTION: Joint notice of proposed
rulemaking.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), Board of
Governors of the Federal Reserve
System (Board), Federal Deposit
Insurance Corporation (FDIC), and
Office of Thrift Supervision (OTS)
(collectively, the Agencies) are
proposing revisions to the existing risk-
based capital framework that would
enhance its risk sensitivity without
unduly increasing regulatory burden.
These changes would apply to banks,
bank holding companies, and savings
associations (banking organizations). A
banking organization would be able to
elect to adopt these proposed revisions
or remain subject to the Agencies’
existing risk-based capital rules, unless
it uses the Advanced Capital Adequacy
Framework proposed in the notice of
proposed rulemaking published on
September 25, 2006 (Basel II NPR).
In this notice of proposed rulemaking
(NPR or Basel IA), the Agencies are
proposing to expand the number of risk
weight categories, allow the use of
external credit ratings to risk weight
certain exposures, expand the range of
recognized collateral and eligible
guarantors, use loan-to-value ratios to
risk weight most residential mortgages,
increase the credit conversion factor for
certain commitments with an original
maturity of one year or less, assess a
charge for early amortizations in
securitizations of revolving exposures,
and remove the 50 percent limit on the
risk weight for certain derivative
transactions. A banking organization
would have to apply all the proposed
changes if it chose to use these
revisions.
Finally, in Section III of this NPR, the
Agencies seek further comment on
possible alternatives for implementing
the ‘‘International Convergence of
Capital Measurement and Capital
Standards: A Revised Framework’’
(Basel II) in the United States as
proposed in the Basel II NPR.
DATES: Comments on this joint notice of
proposed rulemaking must be received
by March 26, 2007.
ADDRESSES: Comments should be
directed to:
OCC: You should include OCC and
Docket Number 06–15 in your comment.
You may submit comments by any of
the following methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• OCC Web Site: http://
www.occ.treas.gov. Click on ‘‘Contact
the OCC,’’ scroll down and click on
‘‘Comments on Proposed Regulations.’’
• E-mail address:
regs.comments@occ.treas.gov.
• Fax: (202) 874–4448.
• Mail: Office of the Comptroller of
the Currency, 250 E Street, SW., Mail
Stop 1–5, Washington, DC 20219.
• Hand Delivery/Courier: 250 E
Street, SW., Attn: Public Information
Room, Mail Stop 1–5, Washington, DC
20219.
Instructions: All submissions received
must include the Agency name (OCC)
and docket number or Regulatory
Information Number (RIN) for this
notice of proposed rulemaking. In
general, OCC will enter all comments
received into the docket without
change, including any business or
personal information that you provide.
You may review comments and other
related materials by any of the following
methods:
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC’s Public
Information Room, 250 E Street, SW.,
Washington, DC. You can make an
appointment to inspect comments by
calling (202) 874–5043.
• Viewing Comments Electronically:
You may request e-mail or CD–ROM
copies of comments that the OCC has
received by contacting the OCC’s Public
Information Room at
regs.comments@occ.treas.gov.
• Docket: You may also request
available background documents and
project summaries using the methods
described above.
Board: You may submit comments,
identified by Docket No. R–1238, by any
of the following methods:
• Agency Web Site: http://
www.federalreserve.gov. Follow the
instructions for submitting comments at
http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
Include docket number in the subject
line of the message.
• FAX: (202) 452–3819 or (202) 452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at http://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper form in Room MP–500 of the
Board’s Martin Building (20th and C
Street, NW.) between 9 a.m. and 5 p.m.
on weekdays.
FDIC: You may submit by any of the
following methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
• Agency Web site: http://
www.FDIC.gov/regulations/laws/
federal/propose.html
• Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/Legal
ESS, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivered/Courier: The guard
station at the rear of the 550 17th Street
Building (located on F Street), on
business days between 7 a.m. and 5 p.m.
• E-mail: comments@FDIC.gov.
• Public Inspection: Comments may
be inspected and photocopied in the
FDIC Public Information Center, Room
VerDate Aug<31>2005 16:17 Dec 22, 2006 Jkt 211001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\26DEP2.SGM 26DEP2
sroberts on PROD1PC70 with PROPOSALS