Regulators propose raising capital requirements for largest US banks by 16%

‘Basel III Endgame’ rules

US regulators have proposed plans to increase the capital requirements for the largest US banks under new ‘Basel III Endgame’ rules to “increase the overall resilience of the banking system”, following the banking turmoil in March.

The proposals, issued by the US Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation on Thursday (27 July), are estimated to result in a 16% increase in common equity tier 1 capital requirements for banks, with the increase mainly affecting the largest and most complex banks.  The rules will apply to banks with more than $100bn in total consolidated assets. For banks below $100bn in total assets, the market risk provisions of the proposal would also apply to those with significant trading activity.  "The effects would vary for each b...