Baselโค III Endgameโฃ May โNot Be capital Neutral for Largest US Banks, Fedโฃ Official โคWarns
The Federal Reserve is โassessing whether the finalization ofโฃ Basel IIIโ capital rules will be capitalโค neutral forโค the largest โUS banks, a Fedโข official indicated. While adjustments โคto capital buffersโค for global systemicallyโ vital banks (G-Sibs) are intended to help achieve overall neutrality, the impact onโข individual institutions remains under review.
Norah Barger, acting deputy director ofโค the Federal Reserve, stated the agency is taking a “comprehensive” look at the interplay between risk-based capitalโค requirements, โฃG-Sib โฃsurcharges, and โthe leverage ratio to โขdetermine the overall effect of the Basel III endgame โคpackage.