Regulatory Alerts2026-03-27 | 2026-05960Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-Weighted Assets
The OCC, Federal Reserve, and FDIC propose modifying regulatory capital rules to enhance risk sensitivity by revising risk weights for residential mortgages, corporate exposures, and other assets under the standardized approach. The proposal removes the threshold-based deduction for mortgage servicing assets from the definition of regulatory capital and requires Category III and IV banking organizations to recognize most accumulated other comprehensive income in their capital. These changes aim to better align capital requirements with the risk profiles of covered banking organizations while maintaining framework simplicity.
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