Federal Banking Agencies Propose Basel III Endgame Capital Rules

On July 27, 2023, the Federal Reserve, FDIC, and OCC issued a notice of proposed rulemaking and request for comment on a proposal (the Proposal) to implement the final components of the Basel III Capital Accords, often referred to as the Basel III endgame — and to strengthen the banking system following the failure of Silicon Valley Bank (SVB) — by applying a broader set of capital requirements to banking organizations with $100 billion or more in assets. The Proposal would not generally affect capital requirements for banks with less than $100 billion in assets.

The Proposal was issued in tandem with the Federal Reserve's July 27, 2023, notice of proposed rulemaking and request for comment on a proposal to adjust the calculation of the so-called GSIB surcharge applicable to the largest and most complex banks.