US sets January-18 deadline for Basel IA comment

WASHINGTON, October 20 (Global Risk Regulator) – US banking regulators have set January 18 as the deadline for comment on their so-called Basel IA proposals for making current bank safety rules more risk-sensitive.

The four federal banking supervisory agencies issued their plans earlier this month, but the three-month comment period takes effect with the formal gazetting of the proposals, in the form of an advanced notice of proposed rulemaking, or ANPR, in the Federal Register today.

The proposals by the agencies – the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Office of Thrift Supervision – aim to counter any competitive problems that might arise from the restricted application in the US of the more complex, Basel II capital adequacy rules. The plans were generally well received by US banking industry representatives.

However, Reuters news agency reported that some bankers attending the annual convention of America’s Community Bankers this week said the proposals overlooked some types of assets and failed to make clear distinctions among some products, such as commercial loans.

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