As the commentary period for the Bank of International Settlements Proposal approaches its March 31 deadline, market observers are looking at the proposed 20% risk weight capital charge on loan commitments less than 365 days as most likely to incite a "bite" in asset-backed land.

The BIS proposal - a set of international banking guidelines - was issued last June by the Basel Committee of Banking Supervision. The section concerning securitization, however, is very similar to the domestic guidelines for risk based capital weighting published earlier last month.

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