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FRB: Press Release--Request for comment on proposed retail credit risk guidance--October 27, 2004

Joint Press Release

Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Office of Thrift Supervision

For Immediate Release

October 27, 2004

Comments Requested on Proposed Retail Credit Risk Guidance
The federal bank and thrift regulatory agencies announced today the publication of a joint
Federal Register notice and request for comment on proposed guidance for Internal
Ratings-Based Systems for Retail Credit Risk for Regulatory Capital. The proposed
guidance provides banking organizations with a description of the agencies' current views
regarding the components and characteristics of a qualifying internal ratings-based (IRB)
system for measuring credit risk of retail exposures. Retail exposures include various types
of consumer credit such as residential mortgages, consumer credit cards, and automobile
and personal loans as well as some small business loans.
The proposed retail guidance, like the August 4, 2003, proposed corporate IRB guidance and
the Advanced Measurement Approaches for operational risk guidance, includes a number of
supervisory standards that ultimately may become part of the qualification criteria for IRB
systems in a future interagency notice of proposed rulemaking regarding the Basel II
framework in the United States.
Comments on the proposed guidance are requested by January 25, 2005. Specific
information on how to file a comment is contained in the Federal Register notice.
Attachment (235 KB PDF)
Corrected formula (28 KB PDF)
Media Contacts:
Federal Reserve Andrew Williams (202) 452-2955
FDIC
David Barr
(202) 898-6992
OCC
Kevin Mukri
(202) 874-5770
OTS

Erin Hickman

(202) 906-6677

2004 Banking and consumer regulatory policy
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