Agencies Request Comment on Proposals to Modernize the Regulatory Capital Framework and Maintain the Strength of the Banking System — 2026-03-19

The federal bank regulatory agencies today requested comment on three proposals to modernize the regulatory capital framework for banks of all sizes. The proposals would streamline capital requirements and better align regulatory capital with risk while maintaining the safety and soundness of the banking system. Following the global financial crisis, the agencies substantially increased the resiliency of the banking system by increasing the quantity and quality of required loss-absorbing capital and introducing stress testing requirements for large banks. Experience over the past decade has demonstrated that certain elements of the framework could be improved without reducing safety and soundness. The first proposal, which would primarily apply to the largest, most internationally active banks, would improve the capital framework by enhancing risk sensitivity, reducing burden, and improving consistency across banks, as well as implementing the final components of the Basel III agreement.