Federal Banking Regulators Publish New Formula Tool for Calculating Capital Requirements for Securitization Exposures
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (collectively, the "Regulators") published a simplified supervisory formula tool to assist institutions in calculating risk-based capital requirements for securitization exposures under the revised capital rules.
According to the Regulators, the tool is neither required nor a component of regulatory reporting. The Regulators recommended that banks continue to reference the revised capital framework when determining regulatory capital requirements.