Bankowość · 28/12/1994

Risk-Based Capital Standards; Bilateral Netting Requirements

The FDIC is amending its risk-based capital standards to recognize the risk-reducing benefits of qualifying bilateral netting contracts. 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 state nonmember banks (banks) 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.