The Federal Reserve Board announced that it will hold an open meeting on July 2 to finalize rules implementing the Basel III capital standards
The Federal Reserve Board announced that it will hold an open meeting on July 2 to finalize rules implementing the Basel III capital standards.
The Fed and other banking agencies issued three joint proposals over a year ago, known as Basel III, in an effort to ensure the banking system is more resilient after the crisis. The agreement would increase minimum capital requirements, narrow the definition of capital and increase risk weights for certain asset classes.
In addition to the Fed, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. also must vote on the rules, which would likely as much as triple the amount of top-quality capital that banks must hold.
ABA, as well as hundreds of bankers and many members of Congress, have expressed grave concerns about the proposed rules because of their complexity and potential negative impact on bank lending.
