Minimum capital requirements

The past two Federal Reserve vice chairs for supervision failed to implement the final installment of the Basel III capital framework. Newly installed Vice Chair for Supervision Michelle Bowman is taking a new approach to the thorny question of bank capital.

The Federal Deposit Insurance Corp. has sent a draft proposal to revise the supplemental leverage ratio to the Office of Information and Regulatory Affairs as a first step toward revising the leverage rule.

In her first speech since being confirmed as the Federal Reserve's vice chair for supervision, Michelle Bowman outlined a set of ambitious pursuits that would overhaul bank regulation and examination.

Acting Comptroller of the Currency Rodney Hood signals rollback of key safeguards like the supplemental leverage ratio, aligning with administration's push to ease bank capital demands and spur credit.

Despite its commitment to change its stress testing program, the Federal Reserve is defending its current practices in court. That argument raises thorny legal questions about whether stress tests are more like rules or adjudications.

After building capital for years in anticipation of higher requirements, banks now face a lighter regulatory outlook under President Trump. But experts don't expect capital levels to come down quickly.

The Federal Reserve proposed a rule to average individual banks' stress test results over two years, a measure the central bank says would reduce volatility in bank capital requirements from year to year.

The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency took a measured approach to developing the international capital standards, according to a Government Accountability Office report.

During congressional testimony, Federal Reserve Chair Jerome Powell said he supports changes to the supplemental leverage ratio to make it easier for banks to intermediate the Treasury market.

Known as a pragmatic moderate before arriving at the Fed, Vice Chair for Supervision Michael Barr is now synonymous with an aggressive and divisive approach to bank regulation. Can he still accomplish his goals under President Trump?