Fed Basel III: Capital Relief for Morgan Stanley, Goldman & BNY Mellon

The Federal Reserve’s proposal to overhaul rules for large banks, published on March 19, 2026, is projected to reduce future capital requirements for U.S. Global systemically important banks (G-SIBs) by $45.2 billion, according to an analysis by Risk Quantum.

The changes center on revisions to the coefficients used to calculate G-SIB scores under Method 2, a framework specific to the United States. The Financial Stability Board (FSB) currently identifies 29 banks globally as G-SIBs, a list that remains unchanged from 2024, though the allocation of banks to different risk buckets has shifted based on end-2024 data. These shifts largely reflect changes in bank activity, with complexity being a major factor in score movements.

The revised capital buffer requirements resulting from the new list will take effect on January 1, 2027, for banks moving into higher risk buckets. G-SIBs are already subject to higher capital buffers and Total Loss-Absorbing Capacity (TLAC) standards, phased in beginning January 1, 2019, as part of the Basel III framework.

According to Risk.net, Morgan Stanley, Goldman Sachs, and BNY Mellon are expected to benefit most from the changes. The Office of Financial Research (OFR) monitors systemic risks posed by the largest banks, including U.S. G-SIBs, through measures like systemic importance scores and a Contagion Index. The OFR calculates U.S. Bank risk scores under Method II using data from FR Y-15 Snapshot Reports.

The Basel Committee on Banking Supervision’s assessment methodology for G-SIBs requires banks to report a set of indicators to national supervisory authorities. These indicators are aggregated to calculate bank scores. The G-SIB dashboard, available since 2014, displays these scores and their components.