Regulators may rejigger current risk-based capital requirements, allowing banks to customize reserves for their riskiest assets, Federal Reserve Board Chairman Alan Greenspan said Thursday.

In a speech here, Mr. Greenspan said regulators are going into the major banks to see how capital is allocated to cover credit risk. These internal models, he said, may be a more accurate means of determining how much money is needed to protect banks from loan losses than the basic risk-based capital calculation.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.