Regulatory Alerts2026-09-10
Added
Capital Adequacy Requirements (CAR) (2027) – Chapter 1 – Overview of Risk-based Capital Requirements
This guideline establishes risk-based capital requirements for banks, bank holding companies, federally regulated trust companies, and federally regulated loan companies, effective November 2026 or January 2027 depending on fiscal year-end. It mandates that institutions maintain capital based on a leverage ratio and a risk-based capital ratio, calculated using standardized or internal model-based approaches for credit, market, and operational risk. Institutions with total regulatory capital exceeding $5 billion or significant international exposures are expected to use Internal Ratings-Based approaches for credit risk, while those with adjusted gross income over $1.5 billion must use the standardized approach for operational risk. The document also sets a capital floor adjustment factor at 67.5% for institutions using internal models and defines specific approval processes and rollout thresholds for these approaches.
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