(Reuters) – The U.S. Federal Reserve and other regulators are set to unveil sweeping changes to a set of proposed bank capital rules on Sept. 19, Bloomberg News reported on Friday, citing people familiar with the matter.
The report added that the amendments could reach 450 pages and would include major changes to the rules focused on operational risk provisions, including reducing the capital that banks must set aside for business lines such as wealth management services and some credit card operations.
The revised proposal would also reduce market risk requirements for the nation’s largest lenders, which would not face stringent requirements on mortgage or stock tax exposures, the report said.
Regulators began implementing Basel III rules after the global financial crisis of 2007-2009 forced taxpayers to bail out many undercapitalized banks.
In July 2023, the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation published proposals for changes to bank capital rules. The rules are expected to overhaul how big banks measure risk and how much capital they must hold.
Banks, which strongly opposed the original proposal for a “Basel III final agreement” that would have raised capital requirements for larger banks, have called for the proposal to be resubmitted.
Regulators have been working for months to revise the plan in a way that could significantly limit the influence of capital on larger companies.
The Federal Deposit Insurance Corporation, the Federal Reserve and the Office of the Comptroller of the Currency did not immediately respond to Reuters requests for comment.