The federal banking agencies have finalized changes to the standardized approach (SA) of the risk-based capital rules that slightly reduce the capital costs of certain assets.  As proposed, this framework focused on simplifying the SA for the banking organizations it covered – i.e., those with assets below $250 billion and certain foreign banking organizations (FBOs).  Since then, the banking agencies have also proposed “tailoring” the capital rules to reduce the number of U.S. companies covered by the advanced approach. Similar rules are also under consideration for FBOs.

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