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On March 19, 2026, the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board, and Office of the Comptroller of the Currency (OCC) jointly requested public comment on three proposals to modernize the regulatory capital framework for banks of all sizes. The first proposal, primarily applicable to the largest and most internationally active banks, would streamline capital requirements by requiring these institutions to use a single set of calculations rather than two to determine compliance with risk-based capital requirements. This proposal would enhance risk sensitivity, reduce administrative burden, improve consistency across banks, and implement the final components of the Basel III agreement. The framework would better capture credit, market, and operational risks. Other banks may voluntarily adopt this approach. Market risk requirements would apply only to banks with significant trading activity. The second proposal, generally applicable to all but the largest banks, would better align capital requirements for traditional lending activities with risk while maintaining framework simplicity. It would reduce disincentives for mortgage lending by modifying capital requirements for mortgage servicing and origination. Certain large banks would be required, subject to a transition period, to reflect unrealized gains and losses on certain securities in their regulatory capital levels. The third proposal, from the Federal Reserve Board, would improve measurement of systemic risk in determining additional capital requirements for the largest and most complex banks. The agencies anticipate that overall capital in the banking system would modestly decrease as a result of these proposals, with capital levels remaining substantially higher than pre-financial crisis levels. Large banks would experience modest capital requirement reductions, while smaller banks would see moderate reductions reflecting their traditional lending activities. The public comment period closes on June 18, 2026.

On March 19, 2026, three federal banking regulators – the US Federal Reserve Board (FRB), US Federal Deposit Insurance Corporation (FDIC) and US Office of the Comptroller of the Currency (OCC) – requested comment on three proposed rules concerning modernization of the regulatory capital framework. According to a news release announcing the proposed rules, they aim to streamline capital requirements and better align regulatory capital with risk, while also maintaining the safety and soundness of the banking system. The proposed rules are as follows: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies; Systemic Risk Report (FR Y-15) : Improving how systemic risk is measured within the framework for determining additional capital requirements for the largest and most complex banks. Category I and II Banking Organizations; Banking Organizations with Significant Trading Activity and Optional Adoption for Other Banking Organizations : Streamlining the capital framework for the largest, most internationally active banks by enhancing risk sensitivity, reducing burden and improving consistency across banks, as well as implementing the final components of the Basel III agreement. Allowing these banks to use one rather than two sets of calculations to determine compliance with risk-based capital requirements. Improving the calibration of the framework to better capture credit, market and operational risks. Allowing other banks to choose to adopt this proposed approach. Applying the market risk aspect of the framework only to banks with significant trading activity. Regulatory Capital and Standardized Approach for Risk-Weighted Assets For the largest banks, better aligning capital requirements for traditional lending activities with risk, while maintaining the framework's simplicity. Reducing disincentives for mortgage lending by modifying capital requirements for servicing and originating mortgages. Modifying mortgage servicing rules for banks that apply the community bank leverage ratio framework. Requiring certain large banks, subject to a transition period, to reflect unrealized gains and losses on certain securities in their regulatory capital levels. Interested parties may submit comments on the proposed rules until June 18, 2026 at this link .

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United States Federal Banking Agencies Request Comment on Regulatory Capital Framework Modernization Proposals

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US Federal Banking Regulators Request Comment on Regulatory Capital Framework Modernization