Understanding the Current Regulatory Capital Requirements Applicable to ...
Applicable regulatory capital requirements are tailored to each category with the most stringent requirements applied to Category I banks (see Table 1). As depicted in Figure 1, under the current capital rules, the largest U.S. banks must calculate and comply with up to 19 capital ratios and buffers requirements altogether: [7]
The OCC, FDIC, and Federal Reserve Board have issued a joint notice of proposed rulemaking to modernize the regulatory capital requirements applicable to Category I and II banking organizations and the market risk capital framework for banking organizations with significant trading activity.
What are the capital requirements for banks in the US
Understanding Bank Capital Requirements : A Regulatory Overview Bank capital requirements are regulatory standards that determine how much capital financial institutions must maintain to ensure their stability and protect depositors. These regulatory capital requirements serve as crucial safeguards in the U.S. banking system, requiring banks to hold sufficient capital reserves relative to their ...
The first proposal would streamline the risk-based capital requirements for Category I and II depository institution holding companies and depository institutions (Category I and II banking organizations) by requiring them to calculate only one set of risk-based capital ratios using the "expanded risk-based approach," which would include requirements for credit risk, operational risk ...
PDF Recent Regulatory Changes to Bank Capital Requirements
Figure 1 illustrates how much required capital across a bank's holding company would decline on average for each category of bank if the recent proposed and final rules in Table 1 went into effect unchanged (relative to the requirements in place in November 2025).
(xii) The instrument has been issued in accordance with applicable laws and regulations; and (xiii) The instrument is reported on the Board-regulated institution's regulatory financial statements separately from other capital instruments. (2) Retained earnings. (3) Accumulated other comprehensive income (AOCI) as reported under GAAP. [11]
PDF FACT SHEET Tailoring Capital and Liquidity Rule for Domestic and ...
The Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board (FRB) and Office of the Comptroller of the Currency (OCC) have published a final rule that tailors regulatory capital and liquidity requirements for large U.S. bank holding companies, U.S. intermediate holding companies of foreign banking organizations (U.S. IHCs), and certain depository institutions.
On March 19, 2026, US federal banking regulators issued proposals to: (i) significantly revise the risk-based regulatory capital requirements for Category I and II banking organizations 1 ( the "Basel III Proposal"); (ii) change the risk weights that other banking organizations apply to credit exposures ( the "Standardized Approach Proposal"); and (iii) change the method for calculating ...
Regulatory Capital
Regulatory Capital Bank capital performs several very important functions. It absorbs losses, promotes public confidence, helps restrict excessive asset growth, and provides protection to depositors and the deposit insurance fund.
Supervisory Policy and Guidance Topics Capital Adequacy The primary function of capital is to support the bank's operations, act as a cushion to absorb unanticipated losses and declines in asset values that could otherwise cause a bank to fail, and provide protection to uninsured depositors and debt holders in the event of liquidation.