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BRIEFLY

Banking & Finance

August 23, 1993|From Times Staff and Wire Reports

New S&L Capital Requirements to be Set: The federal Office of Thrift Supervision today will announce new rules requiring adequate capital to cushion losses brought by changes in interest rates. Designed to avoid future S&L bailouts, the rules were mandated by a 1991 banking law. Rates paid on savings accounts can swing much more quickly than rates earned on long-term fixed-rate mortgages, so an S&L could suddenly find itself paying out much more than it earns. The OTS said 22% of the nation's S&Ls, or 411 institutions, faced "above-normal" levels of interest-rate risk at the end of 1992.

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