The purpose of this paper, prepared by the Securitisation Group of the Basel Committee, is to discuss two sets of proposals that were initially outlined in the January 2001 consultative package. The first proposal is for an IRB treatment of securitisations, and the second is a general approach to synthetic securitisations. By design, these proposals are based on other elements of the New Basel Capital Accord. For example, the IRB treatment of traditional and synthetic securitisations relies on the IRB risk weight functions for credit risk.