U.S. regulator proposes new rules for banks with more than $100 in assets
WASHINGTON – The U.S. regulator Federal Deposit Insurance Corporation (FDIC) has proposed new rules for banks with more than $100 billion in total assets.
The new rules would replace the current system, which allows banks to use their internal models to calculate their risk-based capital requirements.
“The proposal would replace current requirements that include the use of banking organizations’ internal models for credit risk and operational risk with standardized approaches and replace the current market risk and credit valuation adjustment risk requirements with revised approaches,” the regulator said in a statement.
The FDIC is also proposing new rules for securities financing transactions and market risk.
The new rules would take effect in 2025.
The move comes after the failure of three banks in the U.S. in recent months.
The new rules would make it harder for banks to understate their risk-based capital requirements.
This would also help ensure that banks have enough capital to withstand unexpected losses.
They will also make it harder for banks to engage in risky securities financing transactions.
Recent bank failures have raised concerns about the safety and soundness of the banking system.
A statement from the regulator said the new rules will address the concerns and make the banking system more resilient.
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