ABA commented on an FDIC proposal that would incorporate parts of the Basel III capital rules into the assessments system. The proposal, among other things, would lower custodial banks’ deductions from the assessment base and require “highly complex” banks to measure counterparty exposures using Basel III’s standardized approach.
ABA said the proposed approach to highly complex banks’ counterparty measures is weaker than the previous method. The association also said the proposal on custodial banks’ deduction goes too far in excluding certain low-risk, liquid assets.
Read the letter.