Basel III Endgame Proposal – Key Considerations

Rulemaking to implement the final components of Basel III (Basel III endgame) and the Federal Reserve Board’s GSIB surcharge is expected in 2024.  The federal bank agencies proposed rules to strengthen capital requirements for large banks in 2023. Basel III endgame proposed rules will, if passed, modify large bank capital requirements to effectively cover underlying risks and increase the measurement of credit, market, operational, and financial derivative risk at banking institutions. Review this article which provides highlights on the proposed changes to the bank capital requirements, transition period and regulatory reporting requirements.

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Related Content                                                 

• Basel III Risk-Based Capital Requirements
  Access this practice note to understand the BCBS risk-based capital adequacy requirements and related revisions to the prompt corrective action (PCA) framework set out in Basel III.

• Basel III Risk Coverage Requirements
  Gain an overview of the Basel III endgame proposal in this practice note and review Basel III’s risk coverage including key risks related to counterparties and third-parties.

• Dodd-Frank Act Bank Capital Requirements
  Explore the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) risk-based capital requirements for large banking organizations including mandatory risk-based and leverage capital requirements, enhanced prudential standards and stress-testing requirements.

• Liquidity Coverage Ratio
  Understand the liquidity requirements of the BCBS as set out in this practice note. Counsel will be able to advise internationally active banks on provisions of the Basel III’s U.S. liquidity coverage ratio (LCR), the U.S. net stable funding ratio (NSFR) rules, as well as other parts of the Dodd-Frank Act.

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