Financial Institution Letter
FIL-49-2009
August 27, 2009
Regulatory Capital Standards
Notice of Proposed Rulemaking Regarding Risk-Based Capital: Impact of
Modifications to Generally Accepted Accounting Principles, Consolidation of
Asset-Backed Commercial Paper Programs, and Other Related Issues
Summary:
The federal banking agencies are requesting comment on a proposal to better align capital requirements with the actual
risk of certain exposures and to obtain public comment on the effect on regulatory capital that will result from the
implementation of the Financial Accounting Standards Board's Statement of Financial Accounting Standards No.
166, Accounting for Transfers of Financial Assets, an Amendment of FASB Statement No. 140 (FAS 166), and
Statement of Financial Accounting Standards No. 167, Amendments to FASB Interpretation No. 46(R) (FAS 167), on
consolidation of variable interest entities (VIEs). The agencies will accept comments on the proposal for 30 days after
its publication in the Federal Register.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Related Topics:
Risk-Based Capital Rules
12 CFR Part 325
Attachment:
• Summary
• Notice of Proposed Rulemaking - PDF (PDF Help)
Contact:
James Weinberger, Sr. Policy Analyst, at
jweinberger@fdic.gov or (202) 898-7034
Robert Storch, Chief Accountant, at
rstorch@fdic.gov or (202) 898-8906
Mark Handzlik, Senior Attorney, at
mhandzlik@fdic.gov or (202) 898-3990
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site
at www.fdic.gov/news/news/financial/2009/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Highlights:
• The proposal would modify the general risk-based and
advanced risk-based capital adequacy frameworks to
eliminate the exclusion of certain consolidated asset-
backed commercial paper programs from risk-weighted
assets.
• The proposal would provide a reservation of authority in
the general risk-based and advanced risk-based capital
adequacy frameworks to permit the agencies to require
banking organizations to treat entities that are not
consolidated under accounting standards as if they were
consolidated for risk-based capital purposes.
• The agencies request public comment on the regulatory
capital impact of FAS 166 and 167, including, with
respect to the types of VIEs a bank will have to
consolidate, the features and characteristics of
securitization transactions or other transactions with
VIEs that are more or less likely to cause a bank to
provide implicit support, and the effect of FAS 166 and
167 on a bank's financial position, lending, and
activities.
• The agencies also request public comment on a phase-
in period, and the impact of FAS 166 and 167 on loan
loss provisioning, mortgage loan modifications, and
securitization reform programs.Inactive
FIL-49-2009
August 27, 2009
Regulatory Capital Standards
Notice of Proposed Rulemaking Regarding Risk-Based Capital: Impact of
Modifications to Generally Accepted Accounting Principles, Consolidation of
Asset-Backed Commercial Paper Programs, and Other Related Issues
Summary:
The federal banking agencies are requesting comment on a proposal to better align capital requirements with the actual
risk of certain exposures and to obtain public comment on the effect on regulatory capital that will result from the
implementation of the Financial Accounting Standards Board's Statement of Financial Accounting Standards No.
166, Accounting for Transfers of Financial Assets, an Amendment of FASB Statement No. 140 (FAS 166), and
Statement of Financial Accounting Standards No. 167, Amendments to FASB Interpretation No. 46(R) (FAS 167), on
consolidation of variable interest entities (VIEs). The agencies will accept comments on the proposal for 30 days after
its publication in the Federal Register.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Related Topics:
Risk-Based Capital Rules
12 CFR Part 325
Attachment:
• Summary
• Notice of Proposed Rulemaking - PDF (PDF Help)
Contact:
James Weinberger, Sr. Policy Analyst, at
jweinberger@fdic.gov or (202) 898-7034
Robert Storch, Chief Accountant, at
rstorch@fdic.gov or (202) 898-8906
Mark Handzlik, Senior Attorney, at
mhandzlik@fdic.gov or (202) 898-3990
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site
at www.fdic.gov/news/news/financial/2009/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Highlights:
• The proposal would modify the general risk-based and
advanced risk-based capital adequacy frameworks to
eliminate the exclusion of certain consolidated asset-
backed commercial paper programs from risk-weighted
assets.
• The proposal would provide a reservation of authority in
the general risk-based and advanced risk-based capital
adequacy frameworks to permit the agencies to require
banking organizations to treat entities that are not
consolidated under accounting standards as if they were
consolidated for risk-based capital purposes.
• The agencies request public comment on the regulatory
capital impact of FAS 166 and 167, including, with
respect to the types of VIEs a bank will have to
consolidate, the features and characteristics of
securitization transactions or other transactions with
VIEs that are more or less likely to cause a bank to
provide implicit support, and the effect of FAS 166 and
167 on a bank's financial position, lending, and
activities.
• The agencies also request public comment on a phase-
in period, and the impact of FAS 166 and 167 on loan
loss provisioning, mortgage loan modifications, and
securitization reform programs.Inactive
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-
275-3342 or 703-562- 2200).Inactive
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-
275-3342 or 703-562- 2200).Inactive