WASHINGTON -- Federal regulators finally published for public comment Tuesday their plan to incorporate interest rate risk into capital standards. Comments are due Oct. 29.
The goal of the new regulations, required by Congress in the 1991 banking law, is to calculate the effect a specific change in interest rates has on the value of a bank's assets. Small banks are being exempted and large banks are being allowed to use their own measuring devices to judge interest-rate risk.
Banking regulators have been working on an interest rate rule for more than a year. Publication of the proposal has been delayed while the Clinton Treasury Department took a look at it. Once comments are collected and considered the agencies will issue a final rule, which is expected to take effect in December 1994.
