FDIC OFFERS RISKED-BASED CAPITAL RULE FOR BANKS
The Federal Deposit Insurance Corp.
proposed for comment a rule setting minimum capital
requirements for banks based on assessment of the risks of
their assets.
    The proposed rule, if adopted, would carry out a
U.S.-British agreement announced in January for a uniform
system to gauge the capital banks must maintain that accounts
for the riskiness of loans and other assets.
    The regulatory agency's staff said at a meeting the
proposal was in line with those of the Federal Reserve Board
and the Comptroller of the Currency.
    The three U.S. agencies and the Bank of England agreed in
early January on the outlines of a uniform system for capital
standards designed for the increasingly international banking
industry that operates beyond national boundaries.
    The FDIC, which regulates state-chartered banks, sought
public comment for 60 days, after which it will adopt a rule to
conform with those of the Fed and the Comptroller.
    The FDIC said the proposal rule redefines primary capital,
assigns risk weights to assets not kept on a bank's balance
sheet, and lays the groundwork for establishing a minimum
risk-based capital ratio.
 Reuter
