Risk-based Capital Rules: Final Rule on Risk-Based Capital Standards - Market Risk (FDIC Financial Institution Letter)

The federal bank regulatory agencies (agencies) have jointly issued the attached final rule modifying the risk-based capital standards for market risk. The final rule incorporates improvements to the current trading book capital regime as proposed by the Basel Committee on Banking Supervision in Revisions to the Basel II Market Risk Framework published in July 2009 and The Application of Basel II to Trading Activities and the Treatment of Double Default Effects, published in July 2005.

Statement of Applicability to Institutions with Total Assets Under $1 Billion: The final rule applies only to banks with aggregate trading assets and trading liabilities equal to 10 percent or more of quarter-end total assets, or aggregate trading assets and liabilities equal to $1 billion or more.

View letter in full here (links externally to FDIC website).