Published on 14 May 2009 • USA (National/Federal) |
"On December 7, 2007, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the agencies) issued a new risk-based capital framework (advanced approaches rule) that requires some and permits other qualifying banks to use an internal ratings-based approach (IRB) and other methodologies to calculate risk-based capital requirements for credit risk and advanced measurement approaches (AMA) to calculate risk-based capital requirements for operational risk. Collectively, these methodologies are referred to as the advanced approaches. The rule describes the qualification requirements for banks required or seeking to operate under the new framework and the applicable risk-based capital requirements."