Regulatory News for Financial Institutions in the Seventh Federal Reserve District

August 26, 2008

2008-4
Interagency Statement on the Qualification Process for the Advanced Approaches for Basel II
In SR 08-4, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS) issued Qualification Process for Advanced Approaches Risk-Based Capital Framework Implementation. The statement is supervisory guidance on the qualification process for the advanced approaches for Basel II and is intended for banking organizations implementing the Basel II advanced approaches risk-based capital framework in the United States. SR 08-4 updates the interagency statement on qualification issued in January 2005 (SR 05-1) to reflect the final advanced approaches rule published December 7, 2007. The requirements of the final Basel II rule advanced approaches only apply to "core" institutions (greater than $250 billion in assets or $10 billion foreign exposure) and "opt-in" institutions (large complex institutions voluntarily complying with all of the requirements of the final advanced approaches rule).

To discuss this topic with a Chicago Fed staff member, please contact:
Thomas Schenfeld (312) 322-2512
Paul Sternhagen (312) 322-5636