The Federal Deposit Insurance Corp. has voted to approval recommended changes to increase capital requirements for banks. The proposal will include banks with $100 billion or more in assets, lowering the bar from $250 billion previously. The proposal would require banking organizations of $100 billion to $250 billion to include unrealized gains and losses on available-for-sale securities in regulatory capital. “By strengthening the requirements that apply to all large banking organizations, the proposal would enhance their resilience and reduce risks to U.S. financial stability,” according to an overview of the changes by the FDIC. The revised expanded total risk-weighted assets would be phased in by 2028 over a three-year period beginning July 1, 2025. The FDIC, the Office of the Comptroller of the Currency and the U.S. Federal Reserve will accept comments on the proposal until Nov. 30. TD Cowen analyst Jaret Seiberg said recently it’s been expected that the Fed will require capital proposals averaging 200 basis points, or 2%, for banks, although it will vary depending on the bank.
