Regulatory Alerts2026-09-10
Added
Capital Adequacy Requirements (CAR) (2027) – Chapter 3 – Operational Risk
This guideline establishes operational risk capital requirements for banks, bank holding companies, federally regulated trust companies, and federally regulated loan companies, with an effective date of November 2026 or January 2027 depending on the fiscal year-end. Domestic Systemically Important Banks and Category I Small and Medium Sized Deposit-Taking Institutions with annual Adjusted Gross Income exceeding $1.5 billion must use the Standardized Approach, while other institutions use the Simplified Standardized Approach. The Standardized Approach mandates the use of a Business Indicator and an Internal Loss Multiplier based on ten years of high-quality loss data, with a minimum loss threshold of $30,000 and specific data collection standards. Institutions failing to meet loss data standards must hold capital equal to at least 100% of the Business Indicator Component.
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