Risk-Based Capital Standards; Collateralized Transactions — 1996-08-16 [96-20639]

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) (Agencies) are proposing to amend their respective risk-based capital standards to make uniform the Agencies' treatments for transactions supported by qualifying collateral. The proposal would implement part of section 303 of the Riegle Community Development and Regulatory Improvement Act of 1994, which requires the Agencies to work jointly to make uniform their regulations and guidelines implementing common statutory or supervisory policies. The effect of the proposal would be to allow banks, bank holding companies, and savings associations (institutions) to hold less capital for certain transactions collateralized by cash or qualifying securities.