The FDIC, Federal Reserve and OCC last month proposed new capital requirements for banks with more than $100 billion in assets. In response, the American Bankers Association has launched a new bank capital resources page on its website to highlight its advocacy on the topic and share the latest policy developments.
The proposed rulemaking would implement the so-called “Basel III endgame” standards while eliminating the practice of relying on banks’ internal risk models. If implemented, the new rules would go into effect over three years starting on July 1, 2025.
In a statement on the site, the association said that it supports strong bank capital requirements but believes that excessive capital requirements can hinder lending and growth. ABA further noted that regulators have consistently concluded—and stress tests have demonstrated—that the U.S. banking system remains well capitalized.
