Capital; Capital Adequacy Guidelines — 1994-10-14 [94-25299]

The OCC and FRB (the agencies) are proposing to amend their respective risk-based capital guidelines to modify the definition of the OECD-based group of countries. Claims on the governments and banks of this group generally receive lower risk weights than corresponding claims on the governments and banks of non-OECD-based countries. The agencies are proposing this amendment on the basis of an announcement, made on July 15, 1994, by the Basle Committee on Banking Supervision (Basle Committee) that, subject to national consultation, the Basle Committee plans to introduce a change to the Basle Accord in 1995. The effect of the proposed modification would be to exclude from the OECD- based group of countries which are eligible for the lower risk weights any country that has rescheduled its external sovereign debt within the previous five years.