The Board of Governors of the Federal Reserve System is extending the Basel II Interagency Pillar 2 Supervisory Guidance for another three years. This decision, with no changes to the guidance, allows advanced banking organizations to keep using internal methods to determine credit and operational risks. The guidance requires these banks to maintain specific documentation and meet certain qualifications. The Federal Reserve received no public comments on this extension during the comment period that ended on September 27, 2024.
Simple Explanation
The Federal Reserve is keeping some rules the same for big banks so they can keep using their own special ways to figure out risks for another three years. Nobody had anything to say about this when they asked people for their thoughts.