Vol. 77 Thursday,
No. 169 August 30, 2012
Part III
Department of the Treasury
Office of the Comptroller of the Currency
12 CFR Part 3
Federal Reserve System
12 CFR Part 217
Federal Deposit Insurance Corporation
12 CFR Part 324
Regulatory Capital Rules: Standardized Approach for Risk-Weighted Assets;
Market Discipline and Disclosure Requirements; Proposed Rule
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No. 169 August 30, 2012
Part III
Department of the Treasury
Office of the Comptroller of the Currency
12 CFR Part 3
Federal Reserve System
12 CFR Part 217
Federal Deposit Insurance Corporation
12 CFR Part 324
Regulatory Capital Rules: Standardized Approach for Risk-Weighted Assets;
Market Discipline and Disclosure Requirements; Proposed Rule
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52888 Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Proposed Rules
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket ID OCC–2012–0009]
RIN 1557–AD46
FEDERAL RESERVE SYSTEM
12 CFR Part 217
[Regulations H, Q, and Y; Docket No. R–
1442]
RIN 7100 AD 87
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 324
RIN 3064–AD96
Regulatory Capital Rules:
Standardized Approach for Risk-
Weighted Assets; Market Discipline
and Disclosure Requirements
AGENCY: Office of the Comptroller of the
Currency, Treasury; Board of Governors
of the Federal Reserve System; and the
Federal Deposit Insurance Corporation.
ACTION: Joint notice of proposed
rulemaking.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), the Board of
Governors of the Federal Reserve
System (Board), and the Federal Deposit
Insurance Corporation (FDIC)
(collectively, the agencies) are seeking
comment on three notices of proposed
rulemaking (NPRs) that would revise
and replace the agencies’ current capital
rules.
This NPR (Standardized Approach
NPR) includes proposed changes to the
agencies’ general risk-based capital
requirements for determining risk-
weighted assets (that is, the calculation
of the denominator of a banking
organization’s risk-based capital ratios).
The proposed changes would revise and
harmonize the agencies’ rules for
calculating risk-weighted assets to
enhance risk-sensitivity and address
weaknesses identified over recent years,
including by incorporating certain
international capital standards of the
Basel Committee on Banking
Supervision (BCBS) set forth in the
standardized approach of the
‘‘International Convergence of Capital
Measurement and Capital Standards: A
Revised Framework’’ (Basel II), as
revised by the BCBS between 2006 and
2009, and other proposals addressed in
recent consultative papers of the BCBS.
In this NPR, the agencies also propose
alternatives to credit ratings for
calculating risk-weighted assets for
certain assets, consistent with section
939A of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of
2010 (Dodd-Frank Act). The revisions
include methodologies for determining
risk-weighted assets for residential
mortgages, securitization exposures, and
counterparty credit risk. The changes in
the Standardized Approach NPR are
proposed to take effect on January 1,
2015, with an option for early adoption.
The Standardized Approach NPR also
would introduce disclosure
requirements that would apply to top-
tier banking organizations domiciled in
the United States with $50 billion or
more in total assets, including
disclosures related to regulatory capital
instruments. In connection with the
proposed changes to the agencies’
capital rules in this NPR, the agencies
are also seeking comment on the two
related NPRs published elsewhere in
today’s Federal Register. The two
related NPR’s are discussed further in
the SUPPLEMENTARY INFORMATION.
DATES: Comments must be submitted on
or before October 22, 2012.
ADDRESSES: Comments should be
directed to:
OCC: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by the
Federal eRulemaking Portal or email, if
possible. Please use the title ‘‘Regulatory
Capital Rules: Standardized Approach
for Risk-weighted Assets; Market
Discipline and Disclosure
Requirements’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘regulations.gov’’: Go to http://
www.regulations.gov. Click ‘‘Advanced
Search.’’ Select ‘‘Document Type’’ of
‘‘Proposed Rule,’’ and in ‘‘By Keyword
or ID’’ box, enter Docket ID ‘‘OCC–
2012–0009,’’and click ‘‘Search.’’ If
proposed rules for more than one
agency are listed, in the ‘‘Agency’’
column, locate the notice of proposed
rulemaking for the OCC. Comments can
be filtered by Agency using the filtering
tools on the left side of the screen. In the
‘‘Actions’’ column, click on ‘‘Submit a
Comment’’ or ‘‘Open Docket Folder’’ to
submit or view public comments and to
view supporting and related materials
for this rulemaking action.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting or
viewing public comments, viewing
other supporting and related materials,
and viewing the docket after the close
of the comment period.
• Email:
regs.comments@occ.treas.gov.
• Mail: Office of the Comptroller of
the Currency, 250 E Street SW., Mail
Stop 2–3, Washington, DC 20219.
• Fax: (202) 874–5274.
• Hand Delivery/Courier: 250 E Street
SW., Mail Stop 2–3, Washington, DC
20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2012–0009.’’ In general, OCC
will enter all comments received into
the docket and publish them on the
Regulations.gov Web site without
change, including any business or
personal information that you provide
such as name and address information,
email addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
notice by any of the following methods:
• Viewing Comments Electronically:
Go to http://www.regulations.gov. Click
‘‘Advanced search.’’ Select ‘‘Document
Type’’ of ‘‘Public Submission’’ and in
‘‘By Keyword or ID’’ box enter Docket ID
‘‘OCC–2012–0009,’’ and click ‘‘Search.’’
If comments from more than one agency
are listed, the ‘‘Agency’’ column will
indicate which comments were received
by the OCC. Comments can be filtered
by Agency using the filtering tools on
the left side of the screen.
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC, 250 E Street SW.,
Washington, DC 20219. For security
reasons, the OCC requires that visitors
make an appointment to inspect
comments. You may do so by calling
(202) 874–4700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
• Docket: You may also view or
request available background
documents and project summaries using
the methods described above.
Board: When submitting comments,
please consider submitting your
comments by email or fax because paper
mail in the Washington, DC area and at
the Board may be subject to delay. You
may submit comments, identified by
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mstockstill on DSK4VPTVN1PROD with PROPOSALS3
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
12 CFR Part 3
[Docket ID OCC–2012–0009]
RIN 1557–AD46
FEDERAL RESERVE SYSTEM
12 CFR Part 217
[Regulations H, Q, and Y; Docket No. R–
1442]
RIN 7100 AD 87
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 324
RIN 3064–AD96
Regulatory Capital Rules:
Standardized Approach for Risk-
Weighted Assets; Market Discipline
and Disclosure Requirements
AGENCY: Office of the Comptroller of the
Currency, Treasury; Board of Governors
of the Federal Reserve System; and the
Federal Deposit Insurance Corporation.
ACTION: Joint notice of proposed
rulemaking.
SUMMARY: The Office of the Comptroller
of the Currency (OCC), the Board of
Governors of the Federal Reserve
System (Board), and the Federal Deposit
Insurance Corporation (FDIC)
(collectively, the agencies) are seeking
comment on three notices of proposed
rulemaking (NPRs) that would revise
and replace the agencies’ current capital
rules.
This NPR (Standardized Approach
NPR) includes proposed changes to the
agencies’ general risk-based capital
requirements for determining risk-
weighted assets (that is, the calculation
of the denominator of a banking
organization’s risk-based capital ratios).
The proposed changes would revise and
harmonize the agencies’ rules for
calculating risk-weighted assets to
enhance risk-sensitivity and address
weaknesses identified over recent years,
including by incorporating certain
international capital standards of the
Basel Committee on Banking
Supervision (BCBS) set forth in the
standardized approach of the
‘‘International Convergence of Capital
Measurement and Capital Standards: A
Revised Framework’’ (Basel II), as
revised by the BCBS between 2006 and
2009, and other proposals addressed in
recent consultative papers of the BCBS.
In this NPR, the agencies also propose
alternatives to credit ratings for
calculating risk-weighted assets for
certain assets, consistent with section
939A of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of
2010 (Dodd-Frank Act). The revisions
include methodologies for determining
risk-weighted assets for residential
mortgages, securitization exposures, and
counterparty credit risk. The changes in
the Standardized Approach NPR are
proposed to take effect on January 1,
2015, with an option for early adoption.
The Standardized Approach NPR also
would introduce disclosure
requirements that would apply to top-
tier banking organizations domiciled in
the United States with $50 billion or
more in total assets, including
disclosures related to regulatory capital
instruments. In connection with the
proposed changes to the agencies’
capital rules in this NPR, the agencies
are also seeking comment on the two
related NPRs published elsewhere in
today’s Federal Register. The two
related NPR’s are discussed further in
the SUPPLEMENTARY INFORMATION.
DATES: Comments must be submitted on
or before October 22, 2012.
ADDRESSES: Comments should be
directed to:
OCC: Because paper mail in the
Washington, DC area and at the OCC is
subject to delay, commenters are
encouraged to submit comments by the
Federal eRulemaking Portal or email, if
possible. Please use the title ‘‘Regulatory
Capital Rules: Standardized Approach
for Risk-weighted Assets; Market
Discipline and Disclosure
Requirements’’ to facilitate the
organization and distribution of the
comments. You may submit comments
by any of the following methods:
• Federal eRulemaking Portal—
‘‘regulations.gov’’: Go to http://
www.regulations.gov. Click ‘‘Advanced
Search.’’ Select ‘‘Document Type’’ of
‘‘Proposed Rule,’’ and in ‘‘By Keyword
or ID’’ box, enter Docket ID ‘‘OCC–
2012–0009,’’and click ‘‘Search.’’ If
proposed rules for more than one
agency are listed, in the ‘‘Agency’’
column, locate the notice of proposed
rulemaking for the OCC. Comments can
be filtered by Agency using the filtering
tools on the left side of the screen. In the
‘‘Actions’’ column, click on ‘‘Submit a
Comment’’ or ‘‘Open Docket Folder’’ to
submit or view public comments and to
view supporting and related materials
for this rulemaking action.
• Click on the ‘‘Help’’ tab on the
Regulations.gov home page to get
information on using Regulations.gov,
including instructions for submitting or
viewing public comments, viewing
other supporting and related materials,
and viewing the docket after the close
of the comment period.
• Email:
regs.comments@occ.treas.gov.
• Mail: Office of the Comptroller of
the Currency, 250 E Street SW., Mail
Stop 2–3, Washington, DC 20219.
• Fax: (202) 874–5274.
• Hand Delivery/Courier: 250 E Street
SW., Mail Stop 2–3, Washington, DC
20219.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘Docket
ID OCC–2012–0009.’’ In general, OCC
will enter all comments received into
the docket and publish them on the
Regulations.gov Web site without
change, including any business or
personal information that you provide
such as name and address information,
email addresses, or phone numbers.
Comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. Do not
enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
You may review comments and other
related materials that pertain to this
notice by any of the following methods:
• Viewing Comments Electronically:
Go to http://www.regulations.gov. Click
‘‘Advanced search.’’ Select ‘‘Document
Type’’ of ‘‘Public Submission’’ and in
‘‘By Keyword or ID’’ box enter Docket ID
‘‘OCC–2012–0009,’’ and click ‘‘Search.’’
If comments from more than one agency
are listed, the ‘‘Agency’’ column will
indicate which comments were received
by the OCC. Comments can be filtered
by Agency using the filtering tools on
the left side of the screen.
• Viewing Comments Personally: You
may personally inspect and photocopy
comments at the OCC, 250 E Street SW.,
Washington, DC 20219. For security
reasons, the OCC requires that visitors
make an appointment to inspect
comments. You may do so by calling
(202) 874–4700. Upon arrival, visitors
will be required to present valid
government-issued photo identification
and to submit to security screening in
order to inspect and photocopy
comments.
• Docket: You may also view or
request available background
documents and project summaries using
the methods described above.
Board: When submitting comments,
please consider submitting your
comments by email or fax because paper
mail in the Washington, DC area and at
the Board may be subject to delay. You
may submit comments, identified by
VerDate Mar<15>2010 20:18 Aug 29, 2012 Jkt 226001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\30AUP3.SGM 30AUP3
mstockstill on DSK4VPTVN1PROD with PROPOSALS3