US bank regulators release sweeping plan to overhaul capital requirements
The measures released Thursday by the
The plan would result in midsize firms such as
The long-awaited
"One clear message was that regulatory requirements, including capital requirements, must be aligned with actual risk so that banks bear the responsibility for their own risk-taking," Fed Vice Chair for Supervision
The key proposals were close to what Barr and other regulators had told the markets to expect. Banks stocks barely budged after the announcement. The KBW Bank Index rose less than 1% as of midday.
Six of the top
FDIC Chair
The
Under the proposal, midsize banks would now have to include unrealized gains and losses from some securities in their capital ratios.
The package likely won't be implemented for years, and companies, consumer advocates and others will have the next four months to weigh in. Industry critics have said that requiring banks to set aside more capital could hurt competition and slow economic growth.
As part of the 1,087-page plan, regulators are also proposing changes to the way banks' calculate their risk-weighted assets, which is a key component of certain capital ratios.
The agencies want banks to use two different methodologies when calculating that figure: the current
When a bank ultimately wants to calculate their capital ratios, it would have to use whichever methodology resulted in a higher level of risk-weighted assets.
"The whole bias of the international
Executives from some of the biggest firms have said increased requirements could slow the
"Imposing a punitive capital charge on businesses that provide steady fee income is misguided," Bentsen said.
The proposal includes adjustments to a surcharge for the eight
That treatment of home loans would increase borrowing costs and reduce credit availability for low-income and first-time mortgage borrowers, according to the
"Given ongoing affordable housing challenges, regulators should be taking steps that encourage banks to better support real estate finance markets," MBA President
With assistance from
Dallas jury convicts pharmacy owner of kickback fraud in pain cream case
SEC charges Florida man in $35M Ponzi scheme targeting churchgoers
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News