Federal agencies ‘reaffirm’ commitment to Basel III standards

In a joint statement, the Federal Reserve, FDIC and the Office of the Comptroller of the Currency announced today they had “reaffirmed” their commitment to implementing enhanced regulatory capital requirements that align with Basel III standards and will issue a joint proposed rule “as soon as possible.” They added that implementation of the international standards for large banking organizations “would strengthen the resilience of the domestic banking system.”

The Basel Committee on Banking Supervision originally scheduled 2022 to 2027 as the timeframe over which the Basel III regulatory framework was to be implemented. The U.S. agencies said they plan to seek public input on the new capital standards and are currently developing a proposed rule for issuance. They also noted that community banks, which are subject to different capital requirements, would not be affected by the proposal.