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Proposed bank capital requirements increases slashed in the US and UK

Journalists follow onscreen during the Policy Panel at the second day of the 2024 European Central Bank Forum on Central Banking.
Photo: Getty Images

The US Federal Reserve and the UK’s PRA row back on last year’s forceful proposals for substantial capital reserve increases.

The UK PRA has published a ‘near-final’ policy statement on the implementation of Basel 3.1 standards. Having taken “account of feedback received” it has made “material changes” to its original proposals lowering capital requirements for:

  • small and medium enterprise exposures;
  • infrastructure exposures; and
  • trade finance-related activities.

In addition it is putting