US Bank regulators unveil proposed new rules easing large bank capital requirements; Fed to propose revised GSIB surcharge that lowers biggest bank capital by 3.8%; Totality of capital changes under consideration would reduce largest bank capital by 4.8%

• Regulators to propose new standardized approach for smaller banks, banks between USD 250-100bln in assets would see capital fall by 5.2%
• Revised BASEL III proposal would increase large bank capital by 1.4%.
• Banks below USD 100bln would see capital reduction of 7.8% under proposals.
• New proposals would require larger regional banks to account for unrealized losses, would boost capital requirements by 3.1%.

FOMC Comentary

• Fed Governor Barr dissents on proposals, says totality of changes would reduce GSIB capital by 6% or USD 60bln.
• Fed Chair Powell supports proposals, says it is prudent to re-examine rules and proposals preserve core capital requirements for large banks
• Vice Chair for Supervision Bowman says proposals modernise bank capital requirements, addresses ‘overly calibrated’ rules.