{"id":1666972,"date":"2026-03-01T03:20:00","date_gmt":"2026-03-01T08:20:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1666972"},"modified":"2026-03-01T03:20:00","modified_gmt":"2026-03-01T08:20:00","slug":"fed-plans-to-release-sweeping-bank-capital-rule-by-late-march-top-regulator","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/fed-plans-to-release-sweeping-bank-capital-rule-by-late-march-top-regulator\/1666972\/","title":{"rendered":"Fed Plans To Release Sweeping Bank\u2011Capital Rule By Late March: Top Regulator"},"content":{"rendered":"

Fed Plans To Release Sweeping Bank\u2011Capital Rule By Late March: Top Regulator<\/span><\/p>\n

\n

Authored by Andrew Moran via The Epoch Times<\/a> (emphasis ours),<\/em><\/p>\n

Long-awaited banking regulation\u2014also known as the Basel III Endgame framework\u2014will be released next month,<\/strong> said the Federal Reserve\u2019s top banking regulator.<\/p>\n

Michelle Bowman, vice chair for supervision of the Federal Reserve Board, in Washington on July 22, 2025. Ken Cedeno\/Reuters<\/em><\/a><\/p>\n

Fed Vice Chair for Supervision Michelle Bowman, appearing at a Senate Banking Committee hearing on Feb. 26, confirmed that regulators are expected to release an updated Basel III proposal at the end of March.<\/strong><\/p>\n

But while this is the chief goal, Bowman hinted that the deadline might need to be extended.<\/p>\n

She told lawmakers that officials at the Fed, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation have reached a consensus on the reproposal.<\/p>\n

Basel III is a regulatory blueprint crafted in the fallout of the global financial crisis of 2008. It features a number of capital reforms and tighter requirements for how large U.S. banks measure credit, market, and operational risk.<\/p>\n

In recent months, Bowman has teased that Basel III has retooled capital requirements, a move that could bolster lending by traditional lenders, particularly in the mortgage market.<\/p>\n

\u201cWe\u2019re very focused, as we were thinking about the Basel approach, in ways that we could right-size and recalibrate the approach for residential mortgage lending <\/strong>so that we could encourage the banks to get back into the mortgage business,\u201d Bowman told senators.<\/p>\n

\u201cWe\u2019re refocusing our supervision in a laser focus on material financial risks.\u201d<\/p>\n

This comes shortly after Bowman suggested<\/a> new mortgage capital rules for U.S. banks would be integral to the Basel III proposal.<\/p>\n

Appearing at an American Bankers Association event on Feb. 16, Bowman stated that one change could tie a mortgage\u2019s risk weight to its loan-to-value-ratio<\/strong>, effectively removing the one-size-fits-all approach. Another update could remove a provision requiring that banks deduct mortgage\u2011servicing assets from regulatory capital.<\/p>\n

For years, critics have argued that the original Basel III proposal would have reduced lending due to higher capital mandates and would have led to higher funding costs for borrowers.<\/p>\n

Proponents say higher capital requirements are necessary to prevent a similar financial crisis in the future.<\/p>\n

But while the focus has been on Basel, Bowman argued that other issues also need to be addressed, including the Consumer Financial Protection Bureau\u2019s stringent requirements and the sizable penalties banks face if they make mistakes on mortgage applications.<\/p>\n

\u201cI think it\u2019s important that we think about this in a broader manner and holistically as we approach thinking about banks getting back into the mortgage space,\u201d Bowman said.<\/p>\n

Support for Homeownership<\/h2>\n

Overall, Bowman noted, the upcoming reproposal could spark affordable homeownership, ensure banks of all sizes come off the sidelines, and support market liquidity.<\/p>\n

\u201cMy approach is to calibrate the new framework from the bottom up, rather than reverse engineer changes to achieve predetermined or preconceived outcomes to capital requirements<\/strong>,\u201d she stated.<\/p>\n

This comes as a group of eight major banking and housing associations urged regulators to ease mortgage capital requirements.<\/p>\n

In a letter to the Fed, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp., the organizations stated that today\u2019s regulatory environment discourages bank participation in mortgage markets, exacerbating housing affordability challenges.<\/p>\n

The groups said they support current efforts to alter the Basel\u202fIII Endgame rule, casting the process as an opportunity to strengthen mortgage\u2011market stability and create space for banks to play a larger role in home lending.<\/p>\n

Homes for sale in Maryland on Nov. 12, 2023. Madalina Vasiliu\/The Epoch Times<\/em><\/a><\/p>\n

\u201cAdequate capital reduces the likelihood of bank failures that threaten broader financial stability, which can prove costly for households, financial institutions, and taxpayers,\u201d the letter stated. \u201cHowever, excessive capital requirements that are misaligned with empirically derived risk assessments can negatively affect the cost of and access to credit.\u201d<\/p>\n

Revitalizing the mortgage market has been one of the current administration\u2019s objectives to ensure more households have an opportunity to become homeowners.<\/strong><\/p>\n

In his record-length State of the Union address, President Donald Trump noted that his economic agenda balances the needs of current homeowners and homebuyers.<\/p>\n

\u201cLow interest rates will help reduce the Biden\u2011created housing affordability crunch,\u201d Trump said. \u201cWe want to protect those values. We want to keep those values up. We\u2019re going to do both.\u201d<\/p>\n

As of Feb. 26, the average 30-year fixed-rate mortgage is 5.98 percent<\/a>, according to Freddie Mac\u2019s Primary Mortgage Market Survey.<\/p>\n

A recent National Association of Realtors poll found that 85 percent of U.S. voters believe homeownership is central to the American dream.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSat, 02\/28\/2026 – 22:20<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/political\/fed-plans-release-sweeping-bank-capital-rule-late-march-top-regulator<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Fed Plans To Release Sweeping Bank\u2011Capital Rule By Late March: Top Regulator Authored by Andrew Moran via The Epoch Times (emphasis ours), Long-awaited banking regulation\u2014also…<\/p>\n","protected":false},"author":0,"featured_media":1666973,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1666972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6ZEE","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2026\/03\/image_802814729_0-5kKfLm.jpg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1666972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1666972"}],"version-history":[{"count":1,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1666972\/revisions"}],"predecessor-version":[{"id":1666985,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1666972\/revisions\/1666985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1666973"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1666972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1666972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1666972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}