BIS Review 59/2008  5  known as the standardized approach – for those banks not subject to the advanced approaches of Basel II. The proposed standardized approach would help increase risk sensitivity and foster competitive equity.
Since we have not yet formally issued the proposed rules for public comment, I will provide just a brief overview on aspects of the proposal that the agencies have already discussed publicly. The proposed U.S. standardized approach will be based on the approach of the same name in the international Basel II framework, modified in some areas to suit the U.S. banking system.