The FDIC has finalized its proposed revisions to the way exposures at the largest banks are calculated for purposes of determining counterparty credit risk (CCR) in its current risk-based premium (RBP) assessment rules. CCR now will be judged by the standardized credit-exposure measurement in the new U.S. Basel III rules, not the internal-model method allowed under its advanced approach. This approach has been liberalized somewhat from the proposed rule, but does not go as far in recognizing netting as some commenters had urged. It does not, however, go as far as others suggested and wholly reject collateral, margin, and other backstops in favor of a simple total leverage measure of CCR. The rule also updates the capital evaluations used for setting RBPs and revises calculations used by custodial banks to conform them to the Basel III risk weightings, not those included in the current rule.
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