Fed Official Reveals: Major Bank Capital Reform Revision to Launch by End of March

Regulatory Collaboration Driving Reform

During a recent Senate Banking Committee hearing, Fed Vice Chair Michelle Bowman confirmed that the Federal Reserve is working closely with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to finalize a major revision to bank capital rules ahead of the March deadline.

Focus on Basel III Endgame

The reform, known as the Basel III endgame package, aims to strengthen capital adequacy requirements for banks and enhance the resilience of the financial system. Bowman emphasized that regulators have reached consensus on key elements of the proposal, paving the way for official release.

Market Response and Outlook

Analysts suggest the reform will place new capital management demands on large banks. While implementation may pose short-term challenges, the long-term goal is to reinforce financial stability. Regulators have pledged to incorporate industry feedback to ensure effective policy outcomes.