Regulators Advance Basel IA Even As II Stalls, FDIC Tries Again on Big-Bank Deposit Monitoring
The federal banking agencies yesterday released the notice of proposed rulemaking (NPR) for the Basel IA option, considerably expanding the flexibility banks will have to choose between Basel I and IA. Indeed, today’s discussion suggested that even the biggest banks might be allowed to use the IA option instead of the more complex II regime, although no express proposal along these lines was advanced. As expected, the comment deadline for the Basel II NPR (see FSM Report CAPITAL125) was delayed. However, the deadline was pushed farther than expected to ninety days after formal publication of the IA NPR.

CAPITAL217.pdf