Newsletter Mar 2007: NPR UPDATE: Supervisory guidance aims to clarify rules

The supervisory guidance, which was issued jointly by the federal banking supervisory agencies in mid-February and formally gazetted in the Federal Register, the US government’s official journal, on February 28, relates to requirements for calculating risk-based, so-called pillar 1 regulatory capital under the advanced approaches to measuring credit and operational risks in the Basel II framework. The latest guidance updates and expands on earlier guidance issued in 2003 and 2004.