QIS (quantitative impact study) 4 in the United States and QIS 5 in Europe indicated that the AIRB standard will be considerably lower than Basel I's 8 percent of risk assets.
insistence that a straight leverage requirement supplement the AIRB measures.
argument that capital ratios cannot be binding for smaller, "standard approach" banks or for larger, AIRB banks?
Should the United States abandon its proposed transition to an AIRB capital standard for large, internationally active banking firms?
Expansion of the FHLBs' mortgage programs and the implementation of the AIRB
approach of the Basel II capital requirements for large U.
Perhaps because PCA requirements impinge on Fed independence, Federal Reserve personnel represented their concern for the leverage ratio as a "transitional" safeguard meant only to "backstop" Basel protocols for banks whose information or control systems might initially mishandle the complicated AIRB capital calibration.
This supported the hypothesis that quantitative personnel at large banks and the Fed were driving the AIRB train in the USA and that disconnects existed in the way risk-management technocrats interfaced with the rest of their organization.
In March 2006, US regulators indicated [and in September 2006 assured one another in a massive notice of proposed rulemaking (NPR)] that if aggregate capital held by AIRB banks fell by 10%, they reserved the right to redesign the AIRB system.
In July 2006, four giant institutions--Citigroup, JPMorgan Chase, Wachovia, and Washington Mutual--turned on the regulators and openly demanded that large US banks be granted the option either to help design improved AIRB formulas or to use something like the Standardized approach that competing European banks enjoy.
We knew that an increase would be necessary, but we wanted to take a more measured approach in order to maintain balance in the system, said Alfred Savage, AIRB chair.
Since 2004, the AIRB has reduced the mandatory portion of premiums by 18 per cent overall, and it will be closely monitoring the effects of this year s increase.
The AIRB works to maintain an efficient and effective automobile insurance market with rates that are predictable and fair for both motorists and insurance companies.