Federal Regulators Propose New Basel Capital Framework to Simplify Banking Requirements
Basel Capital Proposal·March 19 – March 19, 2026
25 days ago
Federal Regulators Propose New Basel Capital Framework to Simplify Banking Requirements
The Federal Reserve, FDIC, and OCC issued a joint proposal to update the regulatory capital framework for banks. This plan includes changes to Basel III standards, the GSIB surcharge, and the standardized approach for calculating risk. The agencies are now requesting public comment on these measures. The goal is to maintain a strong banking system while modernizing rules that regulators describe as outdated or overly complex.
During an open board meeting, staff presented details on how the proposal would calibrate capital requirements to support economic growth. Supporters of the plan argue it corrects previous efforts that pushed lending away from regulated banks. The proposal aims to create a level playing field for banks of all sizes and move toward a system that builds prosperity for both Main Street and Wall Street.
@federalreserve Request for Comment on Capital FrameworkStatement on Basel Capital Proposal and Economic GrowthOpen Board Meeting on Basel III ProposalsFederal Reserve Board Meeting Video and Materials
Key Statements
SScott Bessent
“The last Administration aimed to hijack the Basel modernization effort to reverse-engineer ever-higher capital requirements without rhyme or reason.”
This post confirms the administration's intent to reverse previous banking regulations in favor of lower capital requirements.
FFederal Reserve
“Federal Reserve, FDIC, and OCC request comment on proposals to modernize the regulatory capital framework.”
This is the official announcement from the regulators initiating the formal process for the new banking rules.
Political Response
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