Reflecting strong pressure on the federal banking agencies to simplify and alleviate the capital burden for smaller banking organizations, the agencies have proposed to halt aspects of the required transition to full Basel III implementation so that they can complete work on revisions to the standardized risk weightings governing banks and BHCs with less than $250 billion in assets. Retaining the current capital treatment on selected assets will prevent near-term implementation of several costly capital charges, presaging more permanent relief when the agencies finalize a future proposal that would still more broadly rewrite the standardized approach.
The full report is available to retainer clients. To find out how you can sign up for the service, click here.