Regulatory Alerts2023-09-18 | 2023-19200Regulatory Capital Rule: Large Banking Organizations and Banking Organizations With Significant Trading Activity
The OCC, Federal Reserve Board, and FDIC propose substantially revised capital requirements for large banking organizations with $100 billion or more in total assets and those with significant trading activity. The rule eliminates most internal models for credit and operational risk in favor of standardized approaches, introduces an output floor to limit model-based capital reductions, and revises market and credit valuation adjustment risk calculations. These changes strengthen risk-sensitive capital ratios, reduce regulatory complexity, and align U.S. standards with Basel III to enhance the financial stability of systemically important institutions.
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