Regulatory Capital Rule: Large Banking Organizations and Banking Organizations With Significant Trading Activity; Extension of Comment Period

As previously announced by the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Board of Governors of the Federal Reserve System (FED), the regulators have now published in the Federal Register the extended deadline for the submission of comments on their proposed new rule to modify the capital requirements of large financial institutions in the U.S. (please see EventID 22526 and EventID 23018 in this context for more information). Specifically, the regulators are extending the deadline from November 30, 2023 to January 16, 2024 to allow interested parties more time to review the proposed new capital framework and prepare their responses.
To recall, the proposed new rule would entirely overhaul the prudential requirements of in-scope, large U.S. financial institutions with the aim of enhancing capital requirements and resilience, for example, by moving towards standardized approaches to assess risks and thus capital requirements of institutions, away from internal models which permitted institutions to apply their „own standards“ or by adopting the standards of the fundamental review of the trading book (FRTB). The move to make large scale changes to the capital requirements of large banks followed the turmoil in the U.S. banking sector earlier this year.
To avoid duplication of information, we refrain from summarizing the consultation again. Please refer to the above noted Event IDs for detailed, comprehensive information on the intended regulatory changes.