Federal Reserve Launches Data Collection on Proposed Large Bank Capital Hike, Extends Comment Period till January 2024
Data collection aims to clarify estimated impact of proposal aimed at strengthening financial system to reduce future crisis, extending review period following industry pushback against potential lending curtailment and economic harm.
- The Federal Reserve Board has initiated a data collection effort to gather additional information from large banks affected by its proposed capital increase. This is aimed at better understanding the potential effects of the proposal before its finalization, with data submissions due by January 16, 2024.
- The bank capital proposal, first unveiled earlier in the year, is the last major regulatory measure intended to address bank failures following the 2007-2008 financial crisis. It is specifically applicable to banks boasting $100 billion or more in total assets.
- In July, agencies including the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation sought feedback on the capital boost proposal, which is expected to augment the resilience of the banking system and mitigate the chances of future financial crises.
- The federal bank regulatory agencies have extended the comment period for their proposal until January 16, 2024. The move is designed to grant stakeholders sufficient time to examine the proposal and prepare their responses.
- The so-called 'Basel endgame' proposal has faced significant resistance, especially from banking firms. Many have argued that the proposal is excessively burdensome and unwarranted as banks would need to potentially reduce lending, scale back their services, and risk inflicting economic harm.
American Banker 
Reuters 
