Reported 28 days ago
The Federal Reserve's regulatory chief has announced substantial revisions to the Basel Endgame draft rule aimed at increasing bank capital, responding to significant pushback from the industry. Key changes include lowering risk-weights for residential real estate loans and expanding preferential treatment to investment-grade entities beyond publicly traded firms. The revision also eliminates certain proposed capital requirements for securities financing transactions and reduces operational risk capital requirements, aligning the new rule with evidence of lower operational losses in investment management. The updated proposal addresses concerns while still imposing stricter regulations on global systemically important banks.
Source: YAHOO