Magazine article American Banker

Regulators Aiming to Finish Work on Rate-Risk Rules by Jan 1

Magazine article American Banker

Regulators Aiming to Finish Work on Rate-Risk Rules by Jan 1

Article excerpt

The regulators are aiming to complete new rules on interest rate risk by Jan. 1, Susan Krause, senior deputy comptroller for bank supervision, told bankers attending the American Bankers Association's annual convention here this week.

The rules, designed to incorporate interest rate risk to capital standards, would require banks to evaluate the interest volatility of their loan portfolios.

In panel discussions with bankers at the conference, regulators from all the agencies explained what they are working on.

The Office of the Comptroller of the Currency expects to complete its "A to Z" regulatory review by year's end, according to the agency's chief counsel, Julie Williams.

New examination guidelines for large banks, announced last month, should arrive at institutions in November, Ms. Krause said. The guidelines require examiners to assess a bank's exposure to nine separate risks.

Federal Reserve Board officials focused mainly on pending regulatory changes.

Dolores Smith, the Fed's associate director for consumer and community affairs, said the central bank will complete work on at least seven regulations within the next year.

The first change to go to the board will be a rewrite of Reg E, which governs electronic transfers. Approval is expected by the end of the year, she said. Ms. Smith declined to discuss the content of the changes.

The Fed also will release for public comment a proposal that would relax some of Reg E's rules governing home banking, she said.

Final consumer-leasing rules, also nearing completion, are scheduled to reach the Fed board by April 1, she said. …

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