The Office of Thrift Supervision proposed Wednesday to streamline the test used to determine interest rate exposure.
Under the plan, thrifts would have to determine how a 300-basis point change in interest rates would affect their capital. Currently thrifts are required to predict the impact of a 400-basis point change on overall assets and net earnings.
The proposed new guidelines would complement risk management policies for securities and derivatives recently approved by bank regulators.
OTS Director Ellen S. Seidman said the streamlined test is intended to provide a more accurate gauge of an institution's capital adequacy and simplify interest rate risk …
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