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�౦��Ϸ���� (�౦��Ϸ����), the Office of the Comptroller of the Currency, and the Federal Reserve Board have amended their respective risk-based capital requirements to reduce the regulatory burden for banks with significant trading activities. The final rule will take effect on July 1, 1999. A copy of the final rule is attached.

The final rule replaces the substantially identical interim final rule that took effect on December 31, 1997. The �౦��Ϸ���� distributed the interim rule to banks on January 9, 1998 (see FIL-5-98).

The market risk rule applies to banks whose trading activity equals ten percent or more of their total assets, or whose trading activity equals $1 billion or more. The final rule eliminates the risk-based capital requirement that an affected institution must hold capital for specific risk equal to at least 50 percent of what would be derived using a standardized calculation.

For more information about the final rule, please contact William A. Stark (202-898-6972), Miguel Browne (202-898-6789) or John J. Feid (202-898-8649) in the �౦��Ϸ����’s Division of Supervision; or Jamey Basham (202-898-7264) in the �౦��Ϸ����’s Legal Division.

Attachment: April 19, 1999, Federal Register , Vol. 64, No. 74, pages 19034-19039 HTML PDF
(54 Kb - PDF help or hard copy )

Distribution: �౦��Ϸ����-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of �౦��Ϸ���� financial institutions letters may be obtained through the �౦��Ϸ����’s Public Information Center, 801 17 ^th Street, NW, Room100, Washington, DC 20434 (800-276-6003 or (703) 562-2200).