In this regard, the agencies have responded by committing to proposing a "standardized" approach instead of Basel IA. Specifically, the staffs are currently working on a notice of proposed rulemaking that would implement some of the simpler approaches for both credit risk and operational risk from the Basel II framework – referred to as the standardized approach.
The proposal is being developed as an optional risk-based capital framework for all banking organizations that are not required to adopt the advanced approaches. We also expect to retain our existing Basel I-based regulatory capital framework for those smaller banks that would prefer to remain under that regime.