✦ LIBER ✦

Statement no.96 modifying risk-based capital standards to account for interest-rate risk

Publisher: Springer
Year: 1996
Tongue: English
Weight: 81 KB
Volume: 10
Category: Article
ISSN: 0920-8550
DOI: 10.1007/bf00142134

No coin nor oath required. For personal study only.

✦ Synopsis

The Federal Deposit Insurance Corporation Improvement Act (FDICIA) of 1991 requires the banking regulatory agencies to revise their risk-based capital standards to take adequate account of exposure to interest-rate risk. Final regulations for implementing this provision are required to be published by June 19, 1993. The Act mandates a "reasonable" transition rule to facilitate bank compliance.

Last August, the agencies sought public comment on a proposed framework for including interest-rate risk. In its Statement No. 87 (September 14, 1992), the Shadow Financial Regulatory Committee found the proposal inadequate in four areas:

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