Federal regulators took another step Wednesday toward lessening banks' reliance on credit ratings by proposing three methods for assessing risk on firms' trading books.

The joint proposal, issued by the Federal Deposit Insurance Corp. (FDIC), the Federal Reserve Board, and the Office of the Comptroller of the Currency (OCC), was approved by the FDIC board by a 3-0 vote. It would establish new capital requirements by using alternative means for evaluating how much capital banks will need to hold to offset risks with investments in securitizations and debt.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.