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2025-08-02 00:39:47
[The Federal Reserve begins discussing a more relaxed final Basel III plan] People familiar with the matter said the Federal Reserve has started a process to develop new risk-based capital rules that will impose less burden on the largest U.S. banks than the Biden-era plan. Michelle Bowman, vice chairman for supervision, is leading the development of this new measure aimed at simplifying the calculation of banks' capital requirements. People familiar with the matter, who asked not to be named because they were discussing private discussions, said regulators will basically abandon the initial 1,087-page version proposed two years ago and plan to announce a new plan as early as the first quarter of 2026. Some people familiar with the matter said the new plan is expected to be more relaxed than the compromise version that increased capital requirements for the largest banks by 9%. The original Basel III final plan - which Bowman had harshly criticized - would have resulted in a 19% increase in capital requirements.
