FIL-7-2015: Regulatory Capital Rules: Regulatory Capital Tool for Securitization Exposures

Financial Institution Letter
 

Regulatory Capital Rules:
Regulatory Capital Tool for Securitization Exposures
 
FIL-7-2015
2/11/2015
 

Summary:
 

The FDIC has published a simplified supervisory formula approach (SSFA) tool as part of its continued outreach efforts to help institutions implement the revised capital rules. The SSFA is a new method banks may use under the revised capital rules to calculate capital requirements for securitization exposures. It is a formula-based approach designed to apply relatively higher capital requirements to the more risky junior tranches that are the first to absorb losses, and relatively lower requirements to the most senior tranches.
 
Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies to all FDIC-supervised banks and savings associations, including community institutions.
 

Distribution:
 FDIC-Supervised Banks and Savings Associations
 

Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2015/fil15007.html
 
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