U.S. bank regulators are seemingly progressing toward proposing a revised version of the ‘Basel endgame’ rules, which govern how large banks assess their risk. This development follows regulatory filings posted this week. The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) submitted proposals to the Office of Management and Budget (OMB) for review on Thursday. The OMB’s Office of Information and Regulatory Affairs is responsible for reviewing such proposals.
The banking industry has been closely monitoring the rule-writing process. Previously, the industry strongly opposed the Biden administration’s efforts to adopt rules that would have substantially increased capital requirements for major banks. The rules aim to implement global standards on how banks should measure risk and allocate capital accordingly.
The submissions, referencing rules on ‘Regulatory Capital and Standardized Approach for Risk-weighted Assets,’ lack specific details and timelines. As of yet, the Federal Reserve (Fed), which also shares responsibility for Basel rules, has not posted a submission. Spokespeople for the three agencies either did not respond to requests for comment or declined to comment.
Michelle Bowman, the Fed Vice Chair for Supervision, who spearheads the central bank’s regulatory efforts, previously indicated that the agencies are working towards proposing a new set of rules by early 2026.
