INTEREST RATE RISK: Regulators continue to grapple with plans to incorporate interest rate risk in risk-based capital. Seventeen months ago, the three banking agencies published a proposal. It was pounded by the industry.

The agencies long ago missed the June 1993 deadline set by the FDIC Improvement Act for final action. Because they cannot agree on how to proceed, the agencies are considering issuing a revised proposal this month. That would probably add months to the process, as comments would be solicited and then analyzed.

RECOURSE: Another forever-in-the-works regulation. The agencies are trying to decide how much capital banks should have to hold against assets sold with recourse.

The agencies want to reduce the capital required for low-level recourse deals, but to increase capital backing riskier sales. A two-tier proposal was issued for comment on May 26. Comments were due July 25. Though the agencies regularly discuss how to proceed, no consensus has developed. However, Congress set March 1995 as a deadline for action on low-level recourse sales.

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