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U.S. financial regulators are set to unveil a series of revisions to proposed new bank capital standards starting Sept. 19, after initial proposals unveiled in mid-2023 faced pushback from the industry, Bloomberg News reported, citing people familiar with the matter.
The changes, which total 450 pages, cover areas ranging from the nation's largest lenders to large regional banks and address a key component of U.S. banking regulations known as the Basel III Final Rule, the report said.
In July 2023, the Big Three US banking regulators – the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation – proposed further increases in required capital across a broader range of US banks (known as the “end of Basel III”).
The revised proposals stem from intense lobbying efforts by Wall Street banks, which argued that raising their capital requirements under the previous proposals would weaken the U.S. banking sector and raise borrowing costs.
Following the publication of the reformulated proposals, a comment period Answers are expected to continue to be sought on how the changes compare to the initial draft.
The largest regional banks in the US include US Bancorp (USB), PNC Financial (PNC), Truist Financial (TFC), and Regions Financial (RF).
JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), Morgan Stanley (MS), and Wells Fargo (WFC) are some of the largest banks in the country.
Banking-related indices include: The KBW Banking Index (BKX) The KBW Nasdaq Regional Banking Index (krx)
