US Regulators to Consider Stricter Revisions to Basel III

December 29th, 2014

The Basel Committee on Banking Supervision (BCBS) published a new consultative paper revising the provisions of the Basel III International Banking Accords.  The paper, entitled, “Revisions to the Standardized Approach for Credit Risk,” proposes to increase the minimum capital required to be held by banks. The revisions would also make it more difficult to calculate capital.  The amendments as well as the original provisions of Basel III will only apply to the largest international financial institutions.

The federal regulators responsible for implementing the Basel III in the United States (US) include the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).  The three regulators published the consultative papers on December 22, 2014 on behalf of the BCBS to solicit public comment from domestic stakeholders.  In the release, the regulators state “Any change to the U.S. risk-based capital rules as a result of proposals in this or subsequent papers released by the BCBS would be considered in a manner consistent with the U.S. notice and comment process.”


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