Comments requested on proposed guidance for Retail Credit Risk.The federal bank and thrift institution Thrift institution An organization formed as a depository for primarily consumer savings. Savings and loan associations and savings banks are thrift institutions. regulatory agencies announced on October 27, 2004, the publication of a joint Federal Register notice and request for comment on proposed guidance for Internal Ratings-Based Systems for Retail Credit Risk for Regulatory Capital. The proposed guidance provides banking organizations with a description of the agencies' current views regarding the components and characteristics of a qualifying internal ratings-based (IRB IRB See: Industrial Revenue Bond ) system for measuring credit risk of retail exposures. Retail exposures include various types of consumer credit such as residential mortgages, consumer credit cards, and automobile and personal loans as well as some small business loans. The proposed retail guidance, like the August 4, 2003, proposed corporate IRB guidance and the Advanced Measurement Approaches for operational risk guidance, includes a number of supervisory standards that ultimately may become part of the qualification criteria for IRB systems in a future interagency notice of proposed rulemaking A notice of proposed rulemaking or NPRM is issued by law when a regulatory agency of the United States Federal Government wishes to add, remove, or change a rule (or regulation) as part of the rulemaking process. Outside the USA. regarding the Basel II Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II is to create an international standard that banking regulators can use when creating regulations framework in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Comments on the proposed guidance are requested by January 25, 2005. |
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