+-------+---+-----------------------+-----------+-----------------+---+
| # O   | # |                       |           |                 | # |
|       | # |                       |           |                 |   |
| ##    | # |                       |           |                 |   |
|       | # |                       |           |                 | # |
|       |   |                       |           |                 |   |
|       | O |                       |           |                 |   |
|       | C |                       |           |                 | # |
|       | C |                       |           |                 | # |
|       |   |                       |           |                 |   |
|       | 2 |                       |           |                 |   |
|       | 0 |                       |           |                 |   |
|       | 0 |                       |           |                 |   |
|       | 1 |                       |           |                 |   |
|       | - |                       |           |                 |   |
|       | - |                       |           |                 |   |
|       | 4 |                       |           |                 |   |
+-------+---+-----------------------+-----------+-----------------+---+
|       | * |                       |           |                 |   |
|       | * |                       |           |                 |   |
|       | O |                       |           |                 |   |
|       | C |                       |           |                 |   |
|       | C |                       |           |                 |   |
|       | B |                       |           |                 |   |
|       | U |                       |           |                 |   |
|       | L |                       |           |                 |   |
|       | L |                       |           |                 |   |
|       | E |                       |           |                 |   |
|       | T |                       |           |                 |   |
|       | I |                       |           |                 |   |
|       | N |                       |           |                 |   |
|       | * |                       |           |                 |   |
|       | * |                       |           |                 |   |
+-------+---+-----------------------+-----------+-----------------+---+
| ## Co |   |                       |           |                 |   |
| mptro |   |                       |           |                 |   |
| ller  |   |                       |           |                 |   |
| of th |   |                       |           |                 |   |
| e Cur |   |                       |           |                 |   |
| rency |   |                       |           |                 |   |
|       |   |                       |           |                 |   |
| > Adm |   |                       |           |                 |   |
| inist |   |                       |           |                 |   |
| rator |   |                       |           |                 |   |
| > of  |   |                       |           |                 |   |
| > Nat |   |                       |           |                 |   |
| ional |   |                       |           |                 |   |
| >     |   |                       |           |                 |   |
| Banks |   |                       |           |                 |   |
+-------+---+-----------------------+-----------+-----------------+---+
| #     |   | Risk-Based Capital    | ## Des    | ## Basel C      |   |
| # Sub |   |                       | cription: | ommittee's Cons |   |
| ject: |   |                       |           | ultative Papers |   |
+-------+---+-----------------------+-----------+-----------------+---+

**TO:** Chief Executive Officers of National Banks, Department and
Division Heads, Examining Personnel and Other Interested Parties

On January 16, 2001, the Basel Committee on Banking Supervision
(committee) published a set of three documents that initiates a second
round of consultation with the industry to develop proposals to revise
the 1988 Capital Accord. Though a summary of the large consultative
package is attached here, the entire set of the committee's papers is
available on the Basel Committee's Web site at
http://www.bis.org/publ/index.htm and the Office of the Comptroller of
the Currency's (OCC's) Web site at http://www.occ.treas.gov**.**

National banks are encouraged to review and comment on the committee's
proposed revisions. This second consultative package differs
substantially from the committee's first consultative paper, "A New
Capital Adequacy Framework," which was published in June 1999 and is
also available on the committee's Web site. Because of the substantial
increase in the length and detail of the committee's proposal, we have
included a list of questions, which may assist banks in focusing their
written comments.

The committee will accept comments on the revised consultative papers
through May 31, 2001*.* Comments may be sent via email to
BCBS.Capital@bis.org or to:

Basel Committee on Banking Supervision

Bank for International Settlements

CH-4002, Basel

Switzerland

Copies of comments may be sent to the OCC via email to
Basel.Comments@occ.treas.gov or to:

Basel 2001 Capital Proposal

> Office of the Comptroller of the Currency, Mail Stop 3-6
>
> 250 E Street, SW
>
> Washington, DC 20019

If, after the committee's consultation, the U.S. federal banking
agencies (the OCC, Federal Reserve Board, and Federal Deposit Insurance
Corporation) concur with the merits of the committee's proposals, they
would propose to alter their capital regulations using the agencies'
rulemaking process.

For further information regarding this bulletin, contact Roger Tufts,
senior economic advisor, Capital Policy Division, at (202) 874-5070;
Tommy Snow, director, Capital Policy Division, at (202) 874-5070, or
Tanya Smith, senior international advisor, International Banking and
Finance, at (202) 874-4730.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Jonathan L. Fiechter

Senior Deputy Comptroller for International and Economic Affairs

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