Regulatory Capital and Standardized Approach for Risk-Weighted Assets

The FDIC, Federal Reserve Board, and OCC jointly propose revisions to the standardized approach for calculating risk-weighted assets and adjusting regulatory capital definitions. The rule modifies risk weights for residential mortgages, retail, and corporate exposures based on granular factors like loan-to-value ratios, while updating counterparty credit risk and securitization methodologies. Category III and IV banking organizations must incorporate most accumulated other comprehensive income components into regulatory capital over a five-year transition, alongside revised mortgage servicing asset treatments and inflation-indexed dollar thresholds.

FDIC published 9 documents in the last 30 days — get each new one by email the day it lands.

Laws and Regulations

March 19, 2026

Share on Facebook

Share on X

Follow the FDIC on LinkedIn

Share through email

Summary:
The Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency jointly issued a proposal that would re vise certain elements of the calculation of risk-weighted assets under the standardized approach and make certain adjustments to the definition of regulatory capital.

The revised standardized approach would improve the regulatory capital framework by retaining its simplicity while improving its risk sensitivity.
Statement of Applicability:
The contents of, and material referenced in, this FIL apply to FDIC-insured financial institutions that are subject to risk-based capital requirements and do not apply the expanded risk-based approach. Highlights:
The proposal would modify the risk weights under the current standardized approach for certain residential mortgage exposures, retail exposures, and corporate exposures. For certain residential mortgage exposures, the proposal would introduce a broader range of risk weights based on more granular risk factors including the use of loan-to-value ratios. It would also make targeted adjustments to the existing methodologies for determining exposure amounts for counterparty credit risk and risk-weighted asset amounts for securitizations, as well as for recognizing the benefits of certain synthetic risk transactions. The proposal would also adjust the recognition of credit risk mitigants. Category III and Category IV banking organizations would be required to include most components of AOCI in regulatory capital and would be provided with a five-year transition period. The proposal also would revise the treatment of mortgage servicing assets by removing the regulatory capital deduction requirement and seek comment on further changes. This revision would apply to all banking organizations, including those electing to use the community bank leverage ratio framework. Consistent with the expanded risk-based proposal, certain dollar-based thresholds in the capital rule would be adjusted in the future to reflect inflation, pursuant to a pre-determined indexing methodology. Comments are due June 18, 2026.

FIL-8-2026

Attachment(s)

Notice of Proposed Rulemaking: Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-weighted Assets

Regulatory Capital and Standardized Approach for Risk-Weighted Assets

Similar documents from other regulators