Regulatory Alerts2026-09-10
Added
Capital Adequacy Requirements (CAR) (2027) – Chapter 4 – Credit Risk – Standardized Approach
This guideline establishes risk-weighting rules for credit exposures under the standardized approach 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. Small and medium-sized deposit-taking institutions (SMSBs) in Categories I or II may apply simplified treatments to specific asset classes, provided the total exposure does not exceed $500 million. The document mandates that all exposures be risk-weighted net of specific allowances, assigns risk weights based on external credit ratings or eligible credit assessment institution scores, and requires institutions to perform due diligence on counterparty risk profiles. Specific risk weight tables are defined for sovereigns, public sector entities, multilateral development banks, and various other exposure categories.