US Basel III Proposal

On July 27, 2023, the Federal Reserve, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) jointly issued a Notice of Proposed Rulemaking (NPR) for the Fundamental Review of the Trading Book (FRTB) and the final elements of the Basel III framework, collectively referred to as the Basel III Endgame (B3E).

Following extensive industry feedback and stakeholder engagement, US regulators have concluded that broad and material changes to the original publication were warranted and have re-proposed the Basel III Endgame as the Basel III Proposal (B3P) and related Global Systemically Important Bank (GSIB) surcharge rules on March 19^th, 2026.

Basel III Proposal represents a significant evolution of the US regulatory capital framework for large and complex banks. It retains the core objective of increased risk sensitivity, while refining requirements across credit risk, operational risk and market risk, and introducing more differentiated tiering based on the size, complexity and trading activity.

Meeting the revised requirements and managing their operational, strategic and financial implications will require banks to take coordinated, enterprise-wide actions across the risk, finance, technology and governance functions.

US Basel III Proposal: what you need to know

• The proposal introduces material refinements to the scope and design of the framework, including clearer applicability thresholds, recalibrated risk weights across key exposure categories (credit, operational and market risk), and adjustments to improve the operational feasibility and risk sensitivity.
• Banks can prepare for go-live by updating their gap analyses and interpretations against the proposal, assessing the capital and operational impacts of the changes, addressing new data and technology needs, and adjusting business strategies in line with the new capital requirements.