Proposed Supervisory Guidance for Internal Ratings-Based Systems for Credit Risk, Advanced Measurement Approaches for Operational Risk, and the Supervisory Review Process (Pillar 2 — 2007-02-28 [07-811]

The Agencies are publishing for comment three documents that set forth proposed supervisory guidance for implementing proposed revisions to the risk-based capital standards in the United States (New Advanced Capital Adequacy Framework or proposed framework). These proposed revisions, which would implement the "International Convergence of Capital Measurement and Capital Standards: A Revised Framework," published in June 2004 by the Basel Committee on Banking Supervision (Basel II), in the United States, were published in the Federal Register on September 25, 2006 as a notice of proposed rulemaking (NPR or proposed rule). The proposed framework outlined in the NPR would require some and permit other qualifying banks to calculate their regulatory risk-based capital requirements using an internal ratings-based (IRB) approach for credit risk and the advanced measurement approaches (AMA) for operational risk (together, the advanced approaches); it also provides guidelines for the supervisory review