Fed launches data collection on large bank capital proposal to clarify effects, inform final rule

A data collection to gather more information from large banks affected by the capital proposal the federal banking agencies proposed this summer was announced by the Federal Reserve Friday.

The data collection, according to the Fed, is intended to further clarify the estimated effects of the proposal and inform any final rule, with summaries to be made public. The submission deadline for the data collection is Jan. 16 – the same date as the new comment period deadline as announced by the agencies, also Friday.

The proposal, which the Fed described as the last major bank regulatory plank designed to address failures from the global financial crisis of 2007-2008 (and which is also referred to as the “Basel III Endgame proposal”), only applies to banks with $100 billion or more in total assets and would strengthen the banking system to reduce the risk of costly financial crises, the Fed said. The data collection also applies only to the large banks covered by the proposal.

The data collection, according to the Fed, seeks to assess the risk-weighted asset impact of the proposal along with the potential impact of certain policy options. “This data will assist the Board in understanding how various policy reform options could affect the banking organization,” the Fed said. Submission of data is voluntary, the agency noted.

Federal Reserve Board launches data collection to gather more information from the banks affected by the large bank capital proposal it announced earlier this year