The Federal Financial Institutions Examination Council on Monday proposed an overhaul of the first-quarter 1997 call report.

Under the proposal, the level of capital that banks hold against assets sold with recourse would be reduced. Currently, a bank must continue to hold capital against the full amount of an asset sold with recourse, even if its risk of loss is limited to 10%. Under the revamped call report, banks would be able to report these transactions as sales, meaning that reserves would reflect only estimated losses.

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