The draft guideline sets out the federal banking regulator’s expectations for disclosure of credit and market risk under Basel III
Banks will have a 40% higher market risk capital requirement under the new regime
The revised market risk framework comes into effect on Jan. 1, 2019
The Basel Committee’s oversight body also discussed the final design and calibration of the leverage ratio
Basel Committee’s proposals concerning step-in risk are most likely to have an impact on banks with large asset and wealth management and investment fund activities
Principles set out supervisory expectations for banks
Global banks considered to be systemically important will not meet the deadline that required them to implement principles in full in 2016
The changes focus on calculating credit risk when determining how much capital banks must set aside
Proposed revisions to market risk rules would increase the overall minimum capital requirement under the Basel III capital rules
However, banks are still falling short of the higher target levels