Finanse publiczne · 28/12/1994

Risk-Based Capital Standards; Bilateral Netting Requirements

The OCC and the OTS (the banking agencies) are amending their respective risk-based capital standards to recognize the risk-reducing benefits of qualifying bilateral netting contracts. On December 7, 1994, the Board of Governors of the Federal Reserve System (Board) issued a similar final rule. This final rule implements a recent revision to the Basle Accord permitting the recognition of such netting arrangements. The effect of the final rule is that banks, thrifts and savings associations (institutions or banking institutions) may net positive and negative mark-to-market values of interest and exchange rate contracts in determining the current exposure portion of the credit equivalent amount of such contracts to be included in risk- weighted assets.