Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Wednesday, March 16, 2016

ABA Opposes Wholesale Adoption of Basel Credit Risk Approach

In a comment letter to the federal regulatory agencies, ABA expressed concerns over the wholesale adoption of the Basel Committee’s revised standardized approach to credit risk, which would apply to large, internationally active banking organizations. ABA pointed out that institutions subject to the approach would have to manage two risk-based capital floors, which would create significant implementation and compliance burdens.

While the association voiced its opposition for wholesale adoption of the standards, the letter pointed out several elements that are improvements over current standards, including the revised methodologies for securities lending transactions, exposures to securities firms, corporate exposures and retail exposures. ABA encouraged the agencies to propose these measures as options under the Generally Applicable Capital Rules for all banks.

ABA also highlighted the need for greater public engagement as international standards for regulatory capital rules are developed.

Read the letter.

1 comment:

Caroline Sanders said...

Very interesting topic. Hope to writemyessayz as soon as I can and find out more info about this

Post a Comment

Please read our comment policy before making a comment.