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�౦��Ϸ���� (�౦��Ϸ����) on July 11, 2003, approved publication of an Advance Notice of Proposed Rulemaking regarding Risk-Based Capital Guidelines; Implementation of New Basel Capital Accord (ANPR). The ANPR is being issued on an interagency basis by the �౦��Ϸ����, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Office of Thrift Supervision. Attached is a summary of key aspects of the ANPR. The ANPR, which is also attached, and related information can be found on the �౦��Ϸ����'s Web site at www.fdic.gov .

The ANPR explains how the agencies would adopt the advanced internal ratings-based approaches to assessing credit risk capital charges (A-IRB) and the advanced measurement approaches to assessing operational risk capital charges (AMA). These approaches would be used by a core group of large and internationally active U.S. banking institutions and selected other banks that, on an opt-in basis, are able to qualify for the framework. All other banks would remain subject to the current regulatory capital standards.

The �౦��Ϸ���� believes that before a final determination can be reached about the desirability of adopting these proposals, more analysis is needed of the potential competitive effects of the new framework, its impact on risk-based capital requirements and its effects on the supervisory process. The agencies are seeking comments that will assist them in formulating their final views on these proposals. Comments on the ANPR are due by November 3, 2003.

For more information, please contact Keith Ligon at (202) 898-3618 (kligon@fdic.gov), Jason Cave at (202) 898-3548 ( jcave@fdic.gov ), or your �౦��Ϸ���� Division of Supervision and Consumer Protection regional office.

For your reference, �౦��Ϸ���� Financial Institution Letters may be accessed on the �౦��Ϸ����'s Web site at www.fdic.gov/news/financial-institution-letters/2003/index.html . To learn how to automatically receive �౦��Ϸ���� Financial Institution Letters through e-mail, please visit www.fdic.gov/news/news/announcements/index.html.

Attachments:

Distribution: �౦��Ϸ����-Supervised Banks (Commercial and Savings) Subject to 12 CFR Part 335

NOTE: Paper copies of �౦��Ϸ���� financial institution letters may be obtained through the �౦��Ϸ����'s Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342, option 5, or (703) 562-2200).