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2025-08-01 22:36:24
[Report: Bowman leads negotiations on a looser version of the final Basel III agreement] The Federal Reserve has begun the process of developing a new risk-based capital rule that would be less burdensome on large US banks than the plan under former US President Biden, according to people familiar with the matter. Michelle Bowman, Vice Chairman for Financial Supervision, is leading the development of the new measure, which aims to simplify how banks calculate capital requirements, after regulators largely rejected the original proposal. The new proposal is expected to be looser than the previous compromise version, which planned to increase capital requirements for large banks by 9% and would require a joint proposal from the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) for finalization.
