According to people familiar with the matter, the Federal Reserve has begun the process of formulating a new risk-based capital rule that would be less burdensome for large US banks than was planned during the time of former US President Joe Biden. Michelle Bauman, the vice chairman responsible for financial supervision, is leading the development of this new measure aimed at simplifying how banks calculate capital requirements, and regulators have largely rejected the original proposal. The new proposal is expected to be more relaxed than the previous compromise version. The previous compromise version planned to raise capital requirements for large banks by 9% and required the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of Monetary Supervisory Authority to finalize the proposal.

According to people familiar with the matter, the Federal Reserve has begun the process of formulating a new risk-based capital rule that would be less burdensome for large US banks than was planned during the time of former US President Joe Biden. Michelle Bauman, the vice chairman responsible for financial supervision, is leading the development of this new measure aimed at simplifying how banks calculate capital requirements, and regulators have largely rejected the original proposal. The new proposal is expected to be more relaxed than the previous compromise version. The previous compromise version planned to raise capital requirements for large banks by 9% and required the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of Monetary Supervisory Authority to finalize the proposal.