FOR IMMEDIATE RELEASE
July 27, 1999
Contact: Kevin M. Mukri
OCC Highlights Basel Credit Risk Guidance Papers
WASHINGTON — The Office of the Comptroller of the Currency (OCC) advised national banks today that the Basel Committee on Banking Supervision has issued four papers providing guidance on various aspects of credit risk in banking activities. The four papers include one final paper and three draft consultive papers. The three consultive papers invite all interested parties, including national banks, to comment to the Committee by November 30, 1999.
"Credit risk remains the most significant risk in banking worldwide," said Comptroller John D. Hawke, Jr. "The Basel Committee is taking an important step by issuing integrated guidance on credit risk management, disclosure, and accounting."
The three consultive papers include:
The final paper, Sound Practices for Loan Accounting and Disclosure, addresses a range of issues facing banks and bank supervisors in the accounting for loans and loan losses. The paper is a revised version of a consultative paper issued in October 1998.
"In issuing these papers, the Basel Committee is emphasizing that the safety and soundness of banking systems depends not only on effective supervision, but also on good management practices and active market discipline," said Senior Deputy Comptroller Krause.
The Basel Committee is made up of representatives of central banks and supervisory authorities of the Group of Ten countries and Luxembourg. The current chairman of the Basel Committee on Banking Supervision is William J. McDonough, President and Chief Executive Officer of the Federal Reserve Bank of New York.
The text of the four papers published today can be obtained from the Internet site of the Bank for International Settlements at www.bis.org.
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