U.S. regulatory capital

Analysis

U.S. regulatory capital: Basel III final rules

Key takeaways and highlights for U.S. banks

In July 2013, three U.S. government agencies released rules for Basel III. Two of the agencies are adopting the rules as written, but the other will adopt them as interim rules.

Read this paper for a summary of and observations about the final Basel III rules, including takeaways, implementation timelines and highlights of certain aspects of the rules.

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In July 2013, the U.S. Federal Reserve (Fed), Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) released Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule. The Fed and OCC are adopting Basel III as a final rule. The FDIC is adopting it as an interim final rule until the supplementary leverage ratio notice of proposed rulemaking (NPR) is finalized.

This paper offers a summary of and observations about the rules, noting that advanced banks continue to feel the pressure, while smaller banks are likely to be feeling some relief. It also:

  • Presents some key takeaways about changes in the final rule
  • Notes implementation timelines
  • Offers a view of what’s next for banks
  • Provides highlights about the capital numerator, capital buffers and leverage ratios, risk-weighted assets standardized and advanced approaches rules
  • Outlines highlights of the supplementary leverage ratio and market risk NPRs
U.S. regulatory capital: Basel III final rules
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