75856 Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations

1The Basel Accord was developed by the Basel

Committee on Banking Supervision and endorsed

by the central bank governors of the Group of Ten

(G–10) countries. The Basel Accord provides a

framework for assessing the capital adequacy of a

depository institution by risk weighting its assets

and off-balance sheet exposures primarily based on

credit risk. The Basel Committee on Banking

Supervision consists of representatives of the

supervisory authorities and central banks from the

Group of Ten countries (Belgium, Canada, France,

Germany, Italy, Japan, Netherlands, Sweden,

Switzerland, United Kingdom, United States), and

Luxembourg.

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the

Currency

12 CFR Part 3

[Docket No. 00–28]

RIN 1557–AB14

FEDERAL RESERVE SYSTEM

12 CFR Parts 208 and 225

[Regulation H and Y; Docket No. R–1087]

FEDERAL DEPOSIT INSURANCE

CORPORATION

12 CFR Part 325

RIN 3064–AC46

Risk-Based Capital Guidelines; Market

Risk Measure; Securities Borrowing

Transactions

AGENCIES: Office of the Comptroller of

the Currency, Treasury; Board of

Governors of the Federal Reserve

System; and Federal Deposit Insurance

Corporation.

ACTION: Interim rule with request for

comment.

SUMMARY: The Office of the Comptroller

of the Currency (OCC), the Board of

Governors of the Federal Reserve

System (Board), and the Federal Deposit

Insurance Corporation (FDIC)

(collectively, the Agencies) are issuing

an interim rule with a request for

comment that amends their market risk

rules to revise the capital treatment for

cash collateral that is posted in

connection with certain securities

borrowing transactions. The effect of the

interim rule is to more appropriately

align the capital requirements for these

transactions with the risk involved and

to provide a capital treatment for U.S.

banking organizations that is more in

line with the capital treatment applied

to their domestic and foreign

competitors.

DATES: This interim rule is effective

January 4, 2001. U.S. banking

organizations may apply the provisions

of this interim rule beginning December

5, 2000. Comments must be received by

January 19, 2001.

ADDRESSES: Comments should be

directed to:

OCC: Written comments may be

submitted electronically to

regs.comments@occ.treas.gov or by mail

to Docket No. 00–28, Office of the

Comptroller of the Currency, Public

Information Room, 250 E Street, SW,

Mail Stop 1–5, Washington, DC 20219.

Comments will be available for

inspection and photocopying at that

address.

Board: Comments, which should refer

to Docket No. R–1087, may be mailed to

Ms. Jennifer J. Johnson, Secretary, Board

of Governors of the Federal Reserve

System, 20th and C Streets, NW,

Washington, DC 20551, or mailed

electronically to

regs.comments@federalreserve.gov.

Comments addressed to Ms. Johnson

may be delivered to the Board’s

mailroom between 8:45 a.m. and 5:15

p.m., and to the security control room

outside of those hours. Both the

mailroom and the security control room

are accessible from the courtyard

entrance on 20th Street between

Constitution Avenue and C Street, NW.

Comments may be inspected in Room

MP–500 between 9 a.m. and 5 p.m.

weekdays pursuant to § 261.12, except

as provided in § 261.14 of the Board’s

Rules Regarding Availability of

Information, 12 CFR 261.12 and 261.14.

FDIC: Written comments should be

addressed to Robert E. Feldman,

Executive Secretary, Attention:

Comments/OES, Federal Deposit

Insurance Corporation, 550 17th Street,

NW, Washington, DC 20429. Comments

may be hand delivered to the guard

station at the rear of the 550 17th Street

Building (located on F Street), on

business days between 7 a.m. and 5 p.m.

(Fax number: (202) 898–3838; Internet

address: comments@fdic.gov).

Comments may be inspected and

photocopied in the FDIC Public

Information Center, Room 100, 801 17th

Street, NW, Washington, DC, between 9

a.m. and 4:30 p.m. on business days.

FOR FURTHER INFORMATION CONTACT:

OCC: Roger Tufts, Senior Economic

Advisor, Capital Policy (202) 874–5070,

or Ron Shimabukuro, Senior Attorney,

Legislative and Regulatory Activities

Division (202) 874–5090, Office of the

Comptroller of the Currency, 250 E

Street, SW, Washington, DC 20219.

Board: Norah Barger, Assistant

Director (202/452–2402), or David

Adkins, Supervisory Financial Analyst

(202/452–5259), Division of Banking

Supervision and Regulation. For the

hearing impaired only,

Telecommunication Device for the Deaf

(TDD), Janice Simms (202/872–4984),

Board of Governors of the Federal

Reserve System, 20th and C Streets,

NW, Washington, DC 20551.

FDIC: Stephen G. Pfeifer, Examination

Specialist (202/898–8904), Accounting

Section, Division of Supervision;

Michael B. Phillips, Counsel, (202/898–

3581), Legal Division, Federal Deposit

Insurance Corporation, 550 17th Street,

NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: Securities

borrowing transactions were not

specifically addressed in the July 1988

agreement entitled ‘‘International

Convergence of Capital Measurement

and Capital Standards’’ (Basel Accord),

nor in the risk-based capital guidelines

adopted by the Agencies in 1989.1 At

that time, the involvement of U.S.

banking organizations in corporate debt

and equity securities trading activities

was limited. However, in recent years,

U.S. banking organizations have

experienced a rapid growth of such

activities, and it is recognized that

securities borrowing transactions serve

an important function in the operation

of securities markets. Securities

borrowings are used in conjunction with

short sales, securities fails (securities

sold but not made available for delivery

on the settlement date), and option and

arbitrage positions. Securities are also

borrowed in order to be pledged against

public fund deposits. Securities

borrowing enhances market efficiency

and provides an important source of

liquidity to the securities markets.

In a typical securities borrowing

transaction, a party (for example, a

banking organization) needing to borrow

securities obtains the securities from a

securities lender and posts collateral in

the form of cash or highly marketable

securities with the securities lender (or

an agent acting on behalf of the

securities lender) in an amount that

fully covers the value of the securities

borrowed plus an additional margin,

usually ranging from two to five

percent. In accordance with U.S.

generally accepted accounting

principles, cash collateral posted with

the securities lender is treated as a

receivable on the books of the securities

borrower (that is, it is treated as a cash

loan from the securities borrower to the

securities lender, who is the obligor).

Under the existing capital rules, the

securities borrower must hold capital

against the full amount of this

receivable, i.e., the collateral posted.

The borrowed securities generally

remain on the balance sheet of the

securities lender, and, therefore, no

additional capital charge is incurred by

Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations 75857

the securities borrower. Where a

securities borrower posts collateral in

the form of securities that continue to be

carried on the borrower’s books, the

only capital charge incurred by the

borrower under the present guidelines is

that associated with a direct holding of

the securities.

The Agencies recognize that securities

borrowing is a long-established financial

activity that historically has resulted in

an exceedingly low level of losses.

Applying a standard 100 percent risk

weight to the full amount of the cash

collateral posted to support such

borrowings, the Agencies further

recognize, results in a capital charge

that is inordinately high, not only in

light of the risk involved in the

transactions, but also in comparison to

the capital required by other U.S. and

non-U.S. regulators of financial firms for

the same transactions. Further, under

the current capital rules, a banking

organization incurs no incremental

capital charge when it borrows

securities and posts securities to

collateralize the borrowing, even though

it is at risk for the amount by which the

collateral exceeds the value of the

securities borrowed.

The Agencies are issuing an interim

rule that better reflects the low risk of

securities borrowing and the posting of

cash collateral in connection with such

transactions and brings the capital

requirements for U.S. banking

organizations into better alignment with

the capital requirements of other U.S.

and non-U.S. regulators of financial

institutions.

Specifically, the Agencies are

adopting an interim rule that permits

banking organizations under the market

risk rules to exclude from risk-weighted

assets receivables arising from the

posting of cash collateral associated

with securities borrowing transactions

to the extent such receivables are

collateralized by the market value of the

securities borrowed, subject to the

following conditions:

1. The transaction is based on

securities includable in the trading book

that are liquid and readily marketable;

2. The transaction is marked to market

daily;

3. The transaction is subject to daily

margin maintenance requirements, and;

4. The transaction is a securities

contract for the purposes of section 555

of the Bankruptcy Code (11 U.S.C. 555),

a qualified financial contract for the

purpose of section 11(e)(8) of the

Federal Deposit Insurance Act (12

U.S.C. 1821(e)(8)), or a netting contract

between or among financial institutions

for the purposes of sections 401–407 of

the Federal Deposit Insurance

Corporation Improvement Act of 1991

(12 U.S.C. 4401–4407), or the Board’s

Regulation EE (12 CFR Part 231).

Under this treatment, the amount of

the receivable created in connection

with the posting of cash collateral in a

securities borrowing transaction that

would be excluded from the securities

borrower’s adjusted risk-weighted assets

is limited to the portion that is

collateralized by the market value of the

securities borrowed. The

uncollateralized portion, which equals

the difference between the amount of

cash collateral that the securities

borrower posts in support of the

borrowing and the current market value

of the securities borrowed, would be

assigned to the risk weight appropriate

to the obligor.

The Agencies note that the Basel

Accord is currently under revision.

These revisions could result in a more

risk-sensitive treatment for securities

borrowing transactions. Accordingly,

banking organizations should be aware

that this capital treatment under the

market risk rules is subject to change

pending the outcome of the Basel

revisions, which may call for higher

capital charges for securities borrowing

and similar transactions.

The Agencies welcome comment on

all aspects of this interim rule. In

particular, the Agencies request

industry views on the capital treatment

of the posting of securities collateral

associated with securities borrowing

transactions. Under the current capital

rules and the interim rule, the posting

of securities collateral will continue to

not incur a capital charge even though

the securities borrower is at risk (as it

is where cash is posted as collateral) for

the amount by which the securities

collateral exceeds the value of the

securities borrowed. The Agencies

recognize that a strong case can be made

for achieving a greater consistency

between the treatment of the posting of

cash collateral and the posting of

securities collateral by requiring a

capital charge on the amount by which

the market value of the securities posted

as collateral exceeds the market value of

securities borrowed. This could be

accomplished under the present capital

framework, for example, by requiring

the difference in the market value of the

securities posted as collateral and that

of the securities borrowed to be treated

as a securities lending transaction.

Under such a treatment, the difference

would be converted at 100 percent to an

on-balance sheet credit equivalent

amount and risk-weighted according to

the obligor. Industry views are sought

on whether the Agencies should seek to

further equalize the capital treatment of

cash and securities collateral posted in

support of a securities borrowing

transaction.

In addition, the Agencies are

specifically interested in whether this

revision to the calculation of the capital

requirement for securities borrowing

transactions should be limited only to

those banking organizations that have

implemented the market risk rules.

Under the interim rule, no reduction in

the capital requirement for these

securities borrowing transactions is

available to banking organizations that

have not implemented an approved

value-at-risk model. Accordingly,

comment is sought on whether the

capital treatment of securities borrowing

should be modified within the nontrading portion of the risk-based capital

calculation.

Regulatory Flexibility Act Analysis

Pursuant to section 605(b) of the

Regulatory Flexibility Act, the Agencies

have determined that this interim rule

would not have a significant impact on

a substantial number of small entities in

accord with the spirit and purposes of

the Regulatory Flexibility Act (5 U.S.C.

601 et seq.). Accordingly, a regulatory

flexibility analysis is not required. The

interim rule would reduce regulatory

burden. The rule will only affect

banking organizations that operate

under the market risk rules which limits

the applicability of the rule to

organizations with significant trading

operations. The rule will reduce

regulatory burden for banking

organizations that engage in securities

borrowing transactions.

Administrative Procedure Act

Pursuant to section 553 of the

Administrative Procedure Act, 5 U.S.C.

553, the Agencies find good cause for

issuing this interim rule in advance of

the receipt of comments from interested

parties. Currently, U.S. banking

organizations are at a competitive

disadvantage versus certain foreign

organizations because of differing

capital treatment for securities

borrowing transactions. The Agencies

find that it is contrary to the public

interest for U.S. banking organizations

to be subject to more stringent rules

(resulting in higher regulatory capital

requirements) than direct competitor

institutions outside of the U.S. that have

capital charges determined from rules

that are consistent with the interim rule.

This rule relieves a restriction on

banking organizations and fosters

consistency among international

institutions prior to year-end, but does

not raise safety and soundness concerns.

75858 Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations

The Agencies are seeking public

comment on the interim rule.

Paperwork Reduction Act

The Agencies have determined that

this interim rule does not involve a

collection of information pursuant to

the provisions of the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501

et seq.).

OCC Unfunded Mandates Reform Act of

1995 Determinations

Section 202 of the Unfunded

Mandates Reform Act of 1995, Public

Law 104–4 (Unfunded Mandates Act)

requires that an agency prepare a

budgetary impact statement before

promulgating a rule that includes a

Federal mandate that may result in

expenditure by State, local, and tribal

governments, in the aggregate, or by the

private sector, of $100 million or more

in any one year. If a budgetary impact

statement is required, section 205 of the

Unfunded Mandates Act also requires

an agency to identify and consider a

reasonable number of regulatory

alternatives before promulgating a rule.

As discussed in the preamble, this

interim rule is limited to banking

organizations subject to the market risk

rules and to securities borrowing

transactions collateralized with cash.

The OCC, therefore, has determined that

the interim rule will not result in

expenditures by State, local, or tribal

governments, or by the private sector of

$100 million or more. Accordingly, the

OCC has not prepared a budgetary

impact statement or specifically

addressed the regulatory alternatives

considered.

List of Subjects

12 CFR Part 3

Administrative practice and

procedure, Capital, National banks,

Reporting and recordkeeping

requirements, Risk.

12 CFR Part 208

Accounting, Agriculture, Banks,

banking, Confidential business

information, Crime, Currency, Federal

Reserve System, Mortgages, Reporting

and recordkeeping requirements,

Securities.

12 CFR Part 225

Administrative practice and

procedure, Banks, banking, Federal

Reserve System, Holding companies,

Reporting and recordkeeping

requirements, Securities.

12 CFR Part 325

Administrative practice and

procedure, Bank deposit insurance,

Banks, banking, Capital adequacy,

Reporting and recordkeeping

requirements, Savings associations,

State non-member banks.

Department of Treasury

Office of the Comptroller of the

Currency

12 CFR Chapter 1

Authority and Issuance

For the reasons set out in the joint

preamble, part 3 of chapter I of title 12

of the Code of Federal Regulations is

amended as follows:

PART 3—MINIMUM CAPITAL RATIOS;

ISSUANCE OF DIRECTIVES

1. The authority citation for part 3

continues to read as follows:

Authority: 12 U.S.C. 93a, 161, 1818,

1828(n), 1828 note, 1831n note, 1835, 3907

and 3909.

2. In appendix A to part 3, in section

3:

a. Revise paragraph (a)(4) introductory

text; and

b. Add a new footnote 12a.

Appendix A To Part 3—Risked-Based

Capital Guidelines

* * * * *

Section 3. Risk Categories/Weights for OnBalance Sheet Assets and Off-Balance Sheet

Items

* * * * *

(a) * * *

(4) 100 percent risk weight. All other assets

not specified above,12a including: 12aA bank subject to the market risk capital

requirements pursuant to appendix B of this

part 3 may calculate the capital requirement

for qualifying securities borrowing

transactions pursuant to section 3(a)(1)(ii) of

appendix B of this part 3.

* * * * *

3. In appendix B to part 3, in section

3, revise paragraph (a)(1) to read as

follows:

Appendix B to Part 3—Risk-Based

Capital Guidelines; Market Risk

Adjustment

(a) * * *

(1) Adjusted risk-weighted assets. (i)

Covered positions. Calculate adjusted riskweighted assets, which equal risk-weighted

assets (as determined in accordance with

appendix A of this part), excluding the riskweighted amount of all covered positions

(except foreign exchange positions outside

the trading account and over-the-counter

derivatives positions).7

(ii) Securities borrowing transactions. In

calculating adjusted risk-weighted assets, a

bank also may exclude a receivable that

results from the bank’s posting of cash

collateral in a securities borrowing

transaction to the extent that the receivable

is collateralized by the market value of the

borrowed securities and subject to the

following conditions:

(A) The borrowed securities must be

includable in the trading account and must

be liquid and readily marketable;

(B) The borrowed securities must be

marked to market daily;

(C) The receivable must be subject to a

daily margining requirement; and

(D) The securities borrowing transaction

must be a securities contract for purposes of

section 555 of the Bankruptcy Code (11

U.S.C. 555741(7)), a qualified financial

contract for purposes of section 11(e)(8) of

the Federal Deposit Insurance Act (12 U.S.C.

1821(e)(8)), or a netting contract between or

among financial institutions, for purposes of

sections 401–407 of the Federal Deposit

Insurance Corporation Improvement Act of

1991 (12 U.S.C. 4401–4407) or Regulation EE

(12 CFR Part 231).

* * * * * 7Foreign exchange positions outside the

trading account and all over-the-counter

derivative positions, whether or not in the

trading account, must be included in

adjusted risk-weighted assets as determined

in appendix A of this part 3.

Dated: November 20, 2000.

John D. Hawke, Jr.,

Comptroller of the Currency.

Federal Reserve System

12 CFR Chapter 11

Authority and Issuance

For the reasons set forth in the joint

preamble, part 208 of chapter II of title

12 of the Code of Federal Regulations is

amended as set forth below:

PART 208—MEMBERSHIP OF STATE

BANKING INSTITUTIONS IN THE

FEDERAL RESERVE SYSTEM

(REGULATION H)

1. The authority citation for part 208

continues to read as follows:

Authority: 12 U.S.C. 24, 36, 92a, 93a,

248(a), 248(c), 321–338a, 371d, 461, 481–486,

601, 611, 1814, 1816, 1818, 1820(d)(9),

1823(j), 1828(o), 1831, 1831o, 1831p–1,

1831r–1, 1835a, 1882, 2901–2907, 3105,

3310, 3331–3351, and 3906–3909; 15 U.S.C.

78b, 78l(b), 78l(g), 78l(i), 78o–4(c)(5), 78q,

78q–1, and 78w, 6801, and 6805; 31 U.S.C.

5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106,

and 4128.

2. In appendix E to part 208, under

section 3, paragraph (a)(1) is revised to

read as follows:

Appendix E to part 208—Capital

Adequacy Guidelines for State Member

Banks; Market Risk Measure

* * * * *

Section 3 Adjustments to the Risk-Based

Capital Ratio Calculations

(a) * * *

Federal Register / Vol. 65, No. 234 / Tuesday, December 5, 2000 / Rules and Regulations 75859

(1) Adjusted risk-weighted assets. Calcuate

adjusted risk-weighted assets, which equals

risk-weighted assets (as determined in

accordance with appendix A of this part),

excluding the risk-weighted amounts of all

covered positions (except foreign exchange

positions outside the trading account and

over-the counter derivative positions) 7 and

receivables arising from the posting of cash

collateral that is associated with securities

borrowing transactions to the extent the

receivables are collateralized by the market

value of the borrowed securities, provided

that the following conditions are met:

(i) The transaction is based on securities

includable in the trading book that are liquid

and readily marketable,

(ii) The transaction is marked to market

daily,

(iii) The transaction is subject to daily

margin maintenance requirements,

(iv) The transaction is a securities contract

for the purposes of section 555 of the

Bankruptcy Code (11 U.S.C. 555), a qualified

financial contract for the purposes of section

11(e)(8) of the Federal Deposit Insurance Act

(12 U.S.C. 1821(e)(8)), or a netting contract

between or among financial institutions for

the purposes of sections 401–407 of the

Federal Deposit Insurance Corporation

Improvement Act of 1991 (12 U.S.C. 4401–

4407), or the Board’s Regulation EE (12 CFR

part 231).

* * * * * 7Foreign exchange positions outside the

trading account and all over-the-counter

derivative positions, whether or not in the

trading account, must be included in the

adjusted risk weighted assets asdetermined

in appendix A of this part.

* * * * *

PART 225—BANK HOLDING

COMPANIES AND CHANGE IN BANK

CONTROL (REGULATION Y)

1. The authority citation for part 225

continues to read as follows:

Authority: 12 U.S.C. 1817(j)(13), 1818,

1828(o), 1831i, 1831p–1, 1843(c), 1844(b),

1972(1), 3106, 3108, 3310, 3331–3351, 3907.

and 3909; 15 U.S.C. 6801 and 6805.

2. In appendix E to part 225, under

section 3, paragraph (a)(1) is revised to

read as follows:

Appendix E to Part 225—Capital

Adequacy Guidelines for Bank Holding

Companies; Market Risk Measure

* * * * *

Section 3. Adjustments to the Risk-Based

Capital Ratio Calculations

(a) * * *

(1) Adjusted risk-weighted assets. Calculate

adjusted risk-weighted assets, which equals

risk-weighted assets (as determined in

accordance with appendix A of this part),

excluding the risk-weighted amounts of all

covered positions (except foreign exchange

positions outside the trading account and

over-the-counter derivative positions) 7 and

receivables arising from the posting of cash

collateral that is associated with securities

borrowing transactions to the extent the

receivables are collateralized by the market

value of the borrowed securities, provided

that the following conditions are met:

(i) The transaction is based on securities

includable in the trading book that are liquid

and readily marketable,

(ii) The transaction is marked to market

daily,

(iii) The transaction is subject to daily

margin maintenance requirements,

(iv) The transaction is a securities contract

for the purposes of section 555 of the

Bankruptcy Code (11 U.S.C. 555), a qualified

financial contract for the purposes of section

11(e)(8) of the Federal Deposit Insurance Act

(12 U.S.C. 1821(e)(8)), or a netting contract

between or among financial institutions for

the purposes of sections 401–407 of the

Federal Deposit Insurance Corporation

Improvement Act of 1991 (12 U.S.C. 4401–

4407), or the Board’s Regulation EE (12 CFR

Part 231).

* * * * * 7Foreign exchange positions outside the

trading account and all over-the-counter

derivative positions, whether or not in the

trading account, must be included in the

adjusted risk weighted assets as determined

in appendix A of this part.

By order of the Board of Governors of the

Federal Reserve System, November 24, 2000.

Jennifer J. Johnson,

Secretary of the Board.

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

For the reasons set forth in the joint

preamble, part 325 of chapter III of title

12 of the Code of Federal Regulations is

amended as follows:

PART 325—CAPITAL MAINTENANCE

1. The authority citation for part 325

continues to read as follows:

Authority: 12 U.S.C. 1815(a), 1815(b),

1816, 1818(a), 1818(b), 1818(c), 1818(t),

1819(Tenth), 1828(c), 1828(d), 1828(i),

1828(n), 1828(o), 1831o, 1835, 3907, 3909,

4808; Pub. L. 102–233, 105 Stat. 1761, 1789,

1790 (12 U.S.C. 1831n note); Pub. L. 102–

242, 105 Stat. 2236, 2355, 2386 (12 U.S.C.

1828 note).

2. In appendix C to part 325, under

section 3, paragraph (a)(1) is revised to

read as follows:

Appendix C to Part 325—Risk-Based

Capital for State Non-Member Banks:

Market Risk

* * * * *

Section 3. Adjustments to the Risk-Based

Capital Ratio Calculations

(a) * * *

* * * * *

(1) Adjusted risk-weighted assets. Calculate

adjusted risk-weighted assets, which equals

risk-weighted assets (as determined in

accordance with appendix A of this part),

excluding the risk-weighted amounts of all

covered positions (except foreign exchange

positions outside the trading account and

over-the-counter derivative positions) 7 and

receivables arising from the posting of cash

collateral that is associated with securities

borrowing transactions to the extent the

receivables are collateralized by the market

value of the borrowed securities, provided

that the following conditions are met:

(i) The transaction is based on securities

includable in the trading book that are liquid

and readily marketable,

(ii) The transaction is marked to market

daily,

(iii) The transaction is subject to daily

margin maintenance requirements,

(iv) The transaction is a securities contract

for the purposes of section 555 of the

Bankruptcy Code (11 U.S.C. 555), a qualified

financial contract for the purposes of section

11(e)(8) of the Federal Deposit Insurance Act

(12 U.S.C. 1821(e)(8)), or a netting contract

between or among financial institutions for

the purposes of sections 401–407 of the

Federal Deposit Insurance Corporation

Improvement Act of 1991 (12 U.S.C. 4401–

4407), or the Board’s Regulation EE (12 CFR

Part 231).

* * * * * 7Foreign exchange positions outside the

trading account and all over-the-counter

derivative positions, whether or not in the

trading account, must be included in the

adjusted risk weighted assets as determined

in appendix A of this part.

Dated at Washington, DC, this 21st day of

November, 2000.

By order of the Board of Directors.

Federal Deposit Insurance Corporation.

James D. LaPierre,

Deputy Executive Secretary.

[FR Doc. 00–30748 Filed 12–4–00; 8:45 am]

BILLING CODE 4810–33–P 6210–01–P 6714–01–P

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the

Currency

12 CFR Part 8

[Docket No. 00–31]

RIN 1557–AB72

Assessment of Fees; National Banks;

District of Columbia Banks

AGENCY: Office of the Comptroller of the

Currency, Treasury.

ACTION: Final rule.

SUMMARY: The Office of the Comptroller

of the Currency (OCC) is amending the

assessment formula it uses to assess

independent trust banks. A trust bank is

considered independent for purposes of

this regulation if it specializes in trust

activities and is not affiliated with a