Proposals to revise bank capital requirements will be up for discussion during a “meet the regulators” session set for May 5 by all three federal banking regulators, the agencies said Tuesday.
The proposals aim to revise the standardized approach for setting the risk-based capital requirements for Category III and IV banking organizations and for banking organizations with total consolidated assets of less than $100 billion. The proposals were issued in March by the agencies.
The agencies assert that the proposals for all but the largest banks “would better align capital requirements for traditional lending activities with risk, while maintaining the framework’s simplicity,” according to a release by the Federal Reserve. It would, the agency contended, reduce disincentives for mortgage lending by modifying capital requirements for servicing and originating mortgages.
“Proposed modifications for mortgage servicing would also apply to banks that apply the community bank leverage ratio framework,” the Fed said. “This proposal would also require certain large banks, subject to a transition period, to reflect unrealized gains and losses on certain securities in their regulatory capital levels.”
At the May 5 event, the agencies added they will also “briefly discuss” their proposal to revise the risk-based capital requirements applicable to the largest banks (Category I and II banking organizations) and to banking organizations with significant trading activity.
The “ask the regulators” session is scheduled to get underway at 2 p.m. ET. The agencies said there would be a question-and-answer segment of the program. However, questions must be submitted in advance. Those interested should email questions in advance of the session to asktheregulators@stls.frb.org. Questions received by April 28 will receive priority, the agency said.
Advance registration for the event is required.
Ask the Regulators: Proposals to Change Bank Capital Requirements
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