US banks’ residential mortgages face mandates exceeding global standards – Bloomberg News
11:42 am Wednesday, July 19th, 2023
(Reuters) -U.S. bank regulators are set to release their plans next week for a sweeping overhaul of capital rules, with the latest draft including requirements for large lenders’ residential mortgages that go beyond international standards, Bloomberg News reported on Monday.
The changes would be part of the U.S. version of a global accord known as Basel III that followed the financial crisis, according to the report.
The plans are poised to be unveiled on July 27 by the U.S. Federal Reserve, the Federal Deposit Insurance Corp (FDIC) and the Office of the Comptroller of the Currency (OCC), Bloomberg reported, citing people familiar with the matter.
The Fed, the OCC, and the FDIC declined to comment.
Last month, Reuters reported that bank regulators led by the Fed are finalizing a proposal to implement international capital standards agreed by the Basel Committee on Banking Supervision in the aftermath of the 2007-2009 financial crisis.
While the Basel rules were agreed upon years ago, the U.S. regulations to comply with them are being drafted after this year’s banking crisis that led to the collapse of Silicon Valley Bank and two other lenders.
The proposal is the first major rule led by Fed Vice Chair for Supervision Michael Barr, who has launched a sweeping review of capital rules and is expected to be tough on Wall Street.
(Reporting by Jaiveer Singh Shekhawat and Pritam Biswas in Bengaluru; Editing by Anil D’Silva)
