On August 5, 2014, the OCC, the Federal Reserve Board and the FDIC announced the adoption of a final rule revising the advanced approaches risk-based capital rules by removing the requirement that only guarantees provided by certain counterparties are eligible for recognition as credit risk mitigants. Advanced- approaches banking organizations are generally those organizations with $250 billion or more in total consolidated assets or $10 billion or more in on- balance-sheet foreign exposure. The final rule expands the set of recognized guarantors by modifying the definition of “eligible guarantee” for purposes of the advanced approaches risk-based capital rules. The revised definition of “eligible guarantee” removes the requirement that an eligible guarantee be provided by an “eligible guarantor” for all exposures other than securitization exposures. This modified definition applies to all banking organizations subject to the advanced approaches rules.
The full text of the final rule is available at: http://www.gpo.gov/fdsys/pkg/FR-2014-07-30/pdf/2014-17858.pdf.