Executive summary

The tri-regulatory plan to strengthen capital rules

This Point of View is part of series covering recent proposals by the US regulators to improve capital standards.The first one was published on July 18, 2023.

On July 27, 2023, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Office of the Comptroller of the Currency (OCC) released interagency proposals to increase capital requirements for large banks in the United States (US) via two separate Notices of Proposed Rulemaking (NPRs):

• the Basel III Endgame proposal¹ and
• the Global Systemically Important Banks (G-SIB) surcharge proposal².

The first one seeks to modify capital requirements for large banks to better reflect underlying risks and to increase the standardization of capital computation methodology. This is to implement the final components of the Basel III agreement, also known as the Basel III Endgame.

The second one seeks to change the surcharge applicable on systemically important banks by revising the treatment of cross-jurisdictional exposure, among other changes.