950803

Fed set final

rule revising

risk-based

capital

WASHINGTON: The Federal Reserve said it issued a final rule revising risk-based capital standards for banks and will now take into account the impact of interest rate changes.

The revision states the Fed will consider "a bank's exposure to declines in the economic value of its capital due to changes in interest rates" in determining the bank's capital needs, the Fed said.

The final rule is effective September 1, 1995.

The Fed is also seeking public comment by October 2 on a joint proposal concerning measuring interest rate risk.-Reuter