Overview
- The Federal Reserve, OCC and FDIC released coordinated proposals covering Basel III endgame elements, the GSIB surcharge, stress tests and the enhanced supplementary leverage ratio, opening a 90‑day comment period.
- The Fed estimates Common Equity Tier 1 requirements would fall about 4.8% for Category I–II banks, 5.2% for Category III–IV institutions, and 7.8% for smaller banks.
- Fed Chair Jerome Powell joined Michelle Bowman, Christopher Waller and Stephen Miran in backing release for comment, while Governor Michael Barr opposed the package and warned it would weaken resilience.
- Aggregate reductions are disputed, with a Fed official citing roughly $20–21 billion across banks versus Barr’s estimate near $60 billion for GSIBs when including the recent eSLR change.
- The draft removes a ‘stricter‑of‑two‑methods’ requirement and eases operational‑risk treatment for fee businesses, tweaks GSIB surcharge calculations, and leaves key questions on internal models and non‑public securities as finalization could extend into 2027 after board and White House review.