Feds Seek Big-Bank Data to Refine Basel

Federal regulators are asking 30 large banking organizations to fill out worksheets to measure how the Basel II risk-based capital proposal will affect their capital requirements for different types of assets, including residential and commercial mortgages and home equity lines of credit.The regulators say they intend to use the data in refining the Basel II proposal, which will be revised and reissued in mid-2005 for another round of comments. "The results are also expected to be used to ensure that minimum capital requirements are appropriately calibrated for both U.S. and international financial institutions," according to the regulators' fourth quantitative impact study. Along with the QIS-4, regulators want the banks to provide detailed loan-loss data. A final RBC rule is expected to be issued in 2006. The regulators also plan to issue proposals to adjust the current RBC requirements for U.S. banks that are not adopting the Basel II approach.