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US Basel III Proposal: what the changes mean

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2 minute read 16 Apr 2026
Related topics
Banking & Capital Markets
Risk and regulatory transformation
Financial services
Risk

US banking regulators issued a revised Basel III Proposal in March 2026 introducing a new capital framework for US banks.

In brief
  • The proposed rules include a new expanded risk-based approach, a revised standardized approach and an amended GSIB surcharge framework.
  • The proposals collectively introduce significant changes to regulatory capital requirements, with varying implications based on a bank’s size and exposure profile.
  • Banks will need to identify where the proposals differ from the 2023 Basel III Endgame proposal and adjust implementation planning accordingly.

On March 19, 2026, the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) (collectively, the Regulators or the Agencies) jointly issued three Notices for Proposed Rulemaking (NPR), rescinding the 2023 Basel III Endgame (B3E) proposal on banking capital requirements and issuing a new Basel III Proposal (B3P).

How EY can help

The proposal puts forth the expanded risk-based approach (ERBA or B3P ERBA) for the largest banks, revises the standardized approach (B3P SA for the new standardized approach) for all other banks with the option to adopt ERBA and adjusts the global systemically important bank (GSIB) surcharge framework (GSIB Proposal). The proposal did not include an exact go-live date, and the Agencies solicited comments with respect to an appropriate compliance date given the substantive changes to the capital regime.

 

Banks will need to identify where the proposals differ from the 2023 B3E proposal and adjust implementation planning accordingly.

US Basel III Proposal: what the changes mean

PDF (13 MB)

Summary 

The revised B3P introduces updates to the risk-based capital rules that would significantly change the current US regulatory capital framework. Banks will need to establish disciplined programs to assess the impacts and adjust their implementation plans in response to the revised proposal. Beyond regulatory compliance, the proposal provides an opportunity for banks to modernize their capital infrastructure and improve efficiency and agility.

About this article

Authors

Related topics
Banking & Capital Markets
Risk and regulatory transformation
Financial services
Risk

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