Reworking the US Basel III Endgame
 

Michael Barr, Vice Chair for Supervision, the US Federal Reserve, gave a speech on Tuesday, September 10, 2024, in response to the proposed draft US capital rules, known as the US Basel III Endgame, jointly published by the Fed, the Office of the Controller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) in July 2023.

These rules are based on the minimum capital standards recommended by the Basel Committee on Banking Supervision (BCBS) and the capital surcharge required by the eight globally systemically important banks (G-SIBs) in the US.

Barr highlighted the key proposals before the Fed board.

The original draft proposed significantly higher capital requirements for banks, leading to a barrage of public comments.

In response, Barr has proposed a second draft which is expected after Fed board approval. Both drafts will be open for public comments and feedback for two months after which the final US capital rules will be published.

Once finalised, banks will have one year to comply with Phase I of the implementation.

We highlight Barr’s second draft proposals here.