Regulatory Shakeup: New Basel Endgame Rules Loom

U.S. regulators, including the FDIC and OCC, are advancing new Basel endgame rules for large banks under global standards to better assess risk and capital needs. Industry opposition remains strong as these changes could increase requirements. Proposals are under review without specifics or timeline.

U.S. bank regulators are inching closer to unveiling a fresh iteration of the so-called "Basel endgame" rules, pivotal in defining how major banks should assess their risk. This development is outlined in recent regulatory filings.

The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have presented proposals to the Office of Management and Budget (OMB) for evaluation. This move is significant as these proposals could reshape the landscape for large banks, aligning with global risk assessment standards.

The banking sector is vigilantly observing these changes, previously opposing efforts under the Biden administration due to potentially heightened capital requirements. The specifics of the proposals remain undisclosed, and the Federal Reserve has yet to contribute, maintaining a cautious stance as a 2026 deadline approaches.