Comptroller Dugan Initiates Process to Improve Risk-Based Capital Rules

Basel IIOffice of the Comptroller of the Currency (OCC)Identity Theft

WASHINGTON- Comptroller of the Currency John C. Dugan approved today an advance notice of proposed rule making (ANPR) seeking public comment on a proposal intended to improve risk-based capital rules for U.S. institutions without the expense and complexity of the Basel II framework.

The U.S. banking agencies plan to address implementation of the Basel II framework in a separate rulemaking.

"Our primary goal is to increase the risk sensitivity of our domestic risk-based capital rules without unduly increasing regulatory burden," Comptroller Dugan said. "This is no small challenge and we cannot easily accomplish that goal without substantial input from the banking industry and other interested parties."

Current risk-based capital rules are the same for all banks. The OCC has heard concern voiced by a number of banks and industry groups that banks operating under Basel II might gain a competitive edge over banks that would not be governed by the Basel II framework.

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