Three federal bank regulators announced yesterday that they are seeking comment on a notice of proposed rulemaking (NPR) to scrub the reference of credit ratings and to replace the term with alternative standards of creditworthiness when evaluating a bank’s capital requirements. The latest notice will amend the market risk NPR published earlier.
The three agencies include the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. In a joint statement, these agencies said the amended NPR will address the inclusion of the alternative standards of creditworthiness to determine capital requirements for certain debts and securitization positions covered by the market risk capital rules.
