D.C. Conference to Examine Risk-Based Capital Rules

Financial regulators plan to take a look at risk-based capital rules during a conference here Dec. 12.

Speaking at the conference will be BankAmerica Corp. chairman David A. Coulter, Wachovia Corp. chairman John G. Medlin Jr., and other bankers, regulators, lawyers, and academics. "Now is the time to provide a forum to analyze how to improve the effectiveness of this capital assessment system in light of institutions' changing business strategies and product mix," Comptroller of the Currency Eugene A. Ludwig said Thursday.

In 1988, the Basel Committee on Banking Supervision set international standards to assess the adequacy of financial institutions' capital. But over the last decade, banks and thrifts have begun using a host of new risk-management techniques, such as credit derivatives and capital- allocation models, said OCC Deputy Comptroller for Core Policy Kevin J. Bailey.

"We wanted to take a step back and foster some intellectual debate with the practitioners," he said.

Registration forms are available from the Federal Financial Institutions Examination Council's Web site, located at www.ffiec.gov.

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