On June 7, the Federal Reserve Board, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation jointly proposed new capital rules to implement the Basel III international regulatory capital reforms mandated by the Basel Committee on Banking Supervision. These proposals, which will be open for comment for 90 days, will apply to all depository institutions, bank holding companies with total consolidated assets of $500 million or more, and savings and loan holding companies. Among many things, the proposals raise the minimum tier 1 capital ratio from 4% to 6% of risk-weighted assets and introduces a new tier 1 common equity ratio and a capital conservation buffer.
Further information about the 871 page proposal can be found here.
