Following the 2023 bank failures, the federal banking regulators (the Federal Reserve, the OCC, and the FDIC) have signaled that they are seeking to develop more stringent bank regulatory requirements for larger banking organizations. These changes would range (or may likely to range) from regulatory capital, leverage and long-term debt, to liquidity and resolvability issues.

This resource provides a high-level, digestible summary of some the biggest changes proposed. Forthcoming coverage will focus on specific changes, industries and business lines, and institution types/sizes.

Capital

The federal banking agencies released a proposed capital rule in late July 2023 to revise the current U.S. capital rules applicable to banking organizations with more than $100 billion in total consolidated assets (including their subsidiary depository institutions) and those with significant trading activities. Banking organizations that meet those thresholds would generally include the following types of entities: banks and savings associations, bank holding companies and covered savings and loan holding companies, as well as U.S. intermediate holding companies of foreign banking organizations.

The Federal Reserve also released a separate proposed rule to amend its rule that identifies and establishes risk-based capital surcharges for global systemically important bank holding companies in the United States (U.S. G-SIBs).

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