Home Finance News Bank regulators ought to revise Basel plan with no more than 13 words.

Bank regulators ought to revise Basel plan with no more than 13 words.

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Bank regulators ought to revise Basel plan with no more than 13 words.

In a recent statement, Federal Reserve Chair Jerome Powell expressed the Fed’s strong belief that bank regulators should seek additional feedback on a divisive proposal to increase bank capital. The proposal, known as the “Basel III Endgame,” aims to revamp how larger banks assess risk and determine capital adequacy. While progress has been made in refining the proposal, Powell highlighted the importance of soliciting more input before finalizing the rule for implementation.

Despite efforts by the Fed, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency to refine the proposal, a consensus has not yet been reached on the best course of action. Powell endorsed the idea of releasing a revised proposal for public comment, emphasizing the necessity of transparency in making significant regulatory changes. This decision aligns with the stance of many banks, who have been advocating for a reproposal in order to address concerns over increased capital requirements for larger institutions.

The ongoing debate over the Basel III Endgame proposal reflects the complex nature of regulatory oversight in the banking sector. Powell’s remarks underscore the importance of thorough review and feedback in shaping regulatory policy, even if it may require additional time and effort. As stakeholders continue to weigh in on the potential impact of the proposal, the path forward remains uncertain, but the commitment to ensuring a fair and effective regulatory framework is apparent.

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