The OCC issued two proposed rules, the first involving revisions to the risk-based capital definition of eligible guarantee for advanced approaches banks. This proposed rule would expand the set of recognized guarantors to that which existed under the 2007 advanced-approaches final rule (Basel II). It would apply to all banking organizations subject to the advanced approaches rule.
The second proposed rule includes revisions to the supplementary leverage ratio. The most significant changes relate to the treatment of written credit derivatives and the application of credit conversion factors to the amount of certain off-balance sheet items. The comment period ends on June 13, 2014 for both proposed rules.
The OCC also issued a final rule to strengthen the supplementary leverage ratio standards for the largest U.S. banking organizations, specifically, any bank holding company with more than $700 billion in consolidated total assets or $10 trillion in assets under custody, and any insured depository institution subsidiary of these covered bank holding companies.