Bankowość · 28.12.1994

Risk-Based Capital Guidelines: Collateralized Transactions

The Office of the Comptroller of the Currency (OCC) is issuing this final rule to amend the risk-based capital guidelines to lower the risk weight from 20 percent to zero percent for securities lending, repurchase agreement transactions, certain collateralized letters of credit, and other collateralized on- and off-balance sheet credit exposures. This final rule is needed to ensure that the risk weight assigned to transactions collateralized with cash or government securities more accurately reflects the minimal operational risk and the near absence of credit risk those transactions present. In addition, this amendment is intended to eliminate the disparity in the risk-based capital treatment of collateralized transactions in international markets, enabling national banks to compete more effectively with foreign banks, and achieves consistency with the capital rules applied to state-chartered banks that are members of the Federal Reserve System, and their holding companies.