FDIC board votes to publish two proposed rules to modernize bank capital framework

The Federal Deposit Insurance Corporation (FDIC) board voted to publish two notices of proposed rulemaking that would reshape how U.S. banking organizations calculate risk‑based capital. FDIC staff, represented to the board by Ben Bosco and Catherine Wood, presented an "expanded risk‑based" proposal aimed at Category 1 and 2 firms and a separate "standardized approach" intended for other banks.

"Staff is presenting two proposals that would modernize the minimum risk‑based capital requirements for all U.S. banking organizations," FDIC staff told the board, outlining measures to increase risk sensitivity, simplify parallel methodologies and improve transparency. The expanded approach would replace parallel model and standardized frameworks for the largest banks with a unified set of requirements, introduce more granular credit‑risk weights (for example, using loan‑to‑value for real‑estate exposures), and revise market‑risk and CVA methodologies. The standardized approach would retain simplicity for most banks while adopting more granular risk weights for mortgages and certain corporate exposures.

Chairman Hill, who read a prepared statement before voting, said he supports "strong capital requirements" but emphasized the need to balance resiliency and economic growth. "Calibrating capital requirements always involves balancing a number of competing objectives," he said, noting the proposals include transition periods and model‑testing timelines.

Director Gordo highlighted staff estimates that the standardized approach could lower aggregate minimum binding capital requirements by roughly 6.9 percent, a change the board discussed as potentially expanding lending capacity. Director Vogt commended staff work and expressed support for moving the proposals to public comment.

Board members voted to adopt resolutions authorizing publication of both notices of proposed rulemaking. The FDIC announced a public comment period that will close on June 18, 2026. The board did not adopt final rules at the meeting; next steps are the public comment period and interagency review.