👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

US to propose Basel rule revisions this month, Bloomberg reports

Published 09/06/2024, 10:19 PM
Updated 09/06/2024, 10:45 PM
© Reuters. FILE PHOTO: The exterior of the Marriner S. Eccles Federal Reserve Board building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo

(Reuters) -The U.S. Federal Reserve and other regulators are set to unveil sweeping changes to a raft of proposed banks capital rules as soon as Sept. 19, Bloomberg News reported on Friday, citing people familiar with the matter.

The revisions could run up to 450 pages and would include key changes to rules that center on operational risk provisions including a reduction in the capital that banks must allocate against business lines like wealth-management services and certain credit-card operations, the report added.

The new revised proposal would also reduce the market-risk requirement for the country's biggest lenders, which would not face as stringent requirements around mortgages or tax-equity exposures, the report said.

Next Tuesday, Fed vice chair Michael Barr will preview the regulators’ revised proposal and explain the next steps at the Hutchins Center on Fiscal & Monetary Policy, Brookings said in a blog post.

Regulators began rolling out the Basel III rules after the 2007-2009 global financial crisis forced taxpayers to bail out several undercapitalized banks.

In July 2023, the Fed, the Office of Comptroller of the Currency, and the Federal Deposit Insurance Corporation published for comment proposed changes to bank capital rules. The rules are expected to overhaul how larger banks gauge risk and how much capital they should hold.

Banks, which fiercely opposed the original "Basel III Endgame" proposal that would hike capital requirements for larger banks, have been calling for a re-proposal.

© Reuters. FILE PHOTO: The exterior of the Marriner S. Eccles Federal Reserve Board building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo

Regulators have been working for months on revising the plan in a way that could significantly curtail the capital impact for larger firms.

The Fed declined to comment on the report. FDIC and the Office of the Comptroller of the Currency didn't immediately respond to Reuters requests for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.