Washington - The Comptroller of the Currency is planning to drop capital requirements for some assets backed by cash.
The agency, in a plan to be published this week for public comment, is proposing to drop the capital requirements for securities lending and repurchase agreements and certain collateralized letters of credit. The OCC said these transactions "pose virtually no credit risk, and only minimal operational risk."
Currently, under risk-based capital rules, banks must put these assets in the 20% risk-weighting category.
