"We continue to consider comments already received on the 2023 proposal, and we will consider those comments together with any comments submitted on the re-proposals as part of any final rulemakings," said Barr, speaking at the Brookings Institution in Washington, D.C. "This is an interim step."
The newly proposed 9% capital requirement increase would apply to global systemically important banks (G-SIBs) with more than $250 billion. While the new plan exempts medium-sized banks from the surcharge, it does require them to include unrealized gains and losses on their securities in regulatory capital.
The initial proposal unveiled last year would have increased capital requirements of the largest U.S. lenders by 19%-money that would otherwise be available to invest in other projects or loaned out to businesses and individuals. The new proposal still increases the requirement, but only by nine percent.
These changes are part of the so-called Basel III endgame, a global regulatory plan that includes measures to forestall a repeat of the 2008 banking crisis.
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