US Basel III Final Rule: Visual Memorandum

Davis Polk Client Newsflash

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Date Published June 2012
Primary Author Davis Polk
Other Authors
Theme Regulation and Supervision of Housing Finance Systems
Country United States


Led by the Federal Reserve Board on June 7, 2012, the three federal banking agencies are proposing a broad and comprehensive revision of the regulatory capital rules applicable to all U.S. national banks, state member and nonmember banks, state and federal savings associations, all U.S. bank holding companies except those with less than $500 million in total consolidated assets, and all U.S. savings and loan holding companies (regardless of size or whether they are primarily insurance holding companies) (collectively, “U.S. Banking Organizations”). The new rules represent the most complete overhaul of U.S. bank capital standards since the adoption of Basel I in 1989. Once they are fully implemented, the new rules will in fact completely replace the agencies’ existing Basel I-based capital requirements (“general capital rules”) and, compared to Basel I, will generally require U.S. Banking Organizations to hold higher amounts of capital, especially common equity, against their risk-weighted assets.

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