Fearing Havoc in Risk-Based Capital Calculations, Regulators Propose to Exclude ABCPs from FIN 46
September 19, 2003
Federal thrift and banking regulators have proposed rules that would allow banks, when calculating regulatory capital risk weightings, to exclude asset-backed commercial paper targeted for balance-sheet consolidation under new accounting rules. The proposed changes to federal risk-based capital standards are aimed at easing the pressure on banks’ regulatory capital ratios brought on by a new accounting rule that requires all companies