Federal Financial Institutions Examination Council
|For Immediate Release||October 16, 1997|
Bank Capital Conference Is December 12 in Washington, D.C.
The Federal Financial Institutions Examination Council (FFIEC) announced today it will hold a one-day conference to examine the current regulatory capital framework in todays evolving financial services environment. The conference is scheduled for December 12, 1997, in Washington, D.C.
"The pace of development for new financial products and corresponding risk management systems is increasing rapidly," said Comptroller of the Currency Eugene A. Ludwig, who is chairman of the FFIEC. "All the federal regulators recognize that these products and risk management methods can have a substantial impact on capital adequacy. We are sponsoring this conference to promote the dialogue on this important issue among financial institutions and their regulators."
In 1988, the Basle Supervisors Committee recommended and several nations adopted a system of risk-based capital to assess the adequacy of financial institutions capital
However, in the past 10 years there have been considerable changes in how banks operate and the products they provide. Further, the FFIEC said the federal regulators have adopted systems of risk-based supervision that suggest consideration of a similar approach to evaluating capital. "Now is the time to provide a forum to analyze how to improve the effectiveness of this capital assessment system in light of institutions changing business strategies and product mix," Mr. Ludwig said.
Panelists at the conference will present their views on the current regulatory capital requirements, as well as possible alternatives or enhancements for measuring capital adequacy. The panelists will also be asked to consider capital adequacy in the global marketplace. Conference attendees will have an opportunity to offer their perspectives on all aspects of capital regulation as time will be allotted for questions.
The forum will be held on December 12, 1997, from 8 a.m. to 4 p.m. at the Capital Hilton Hotel, Washington, D.C. Information on conference panelists and topics to be discussed will be available on the FFIEC Web site at http://www.ffiec.gov