Regulators have extended the
Banks and other interested parties will now have until Jan. 16, 2024 to weigh in on the so-called
The Fed also
The moves come after months of
Opponents have raised various issues with the reform package, ranging from concerns about specific provisions — such as the elevated
The Bank Policy Institute, a lobbying group that represents large banks, said Friday's announcements should be the first of several steps taken by regulators to address the "significant problems" with their capital proposal.
"The agencies should have engaged in rigorous economic analysis of the proposal's costs before, not during, the comment period," BPI President and CEO Greg Baer said in a statement. "As a matter both of good policymaking and legal compliance, they must also give the public ample time — 120 days — to analyze and comment on the results of the impact study after they are released."
Baer also reiterated BPI's call for the agencies to re-propose the rule change after making changes.
When regulators issued the notice of proposed rulemaking on the package, Fed Vice Chair for Supervision Michael Barr said the central bank intended to "collect additional data to refine our estimates of the rule's effects."
The collection initiative rolled out Friday is intended to generate data about both the capital proposal as well as
"In particular, the Board seeks to assess the risk-weighted asset impact of the proposed revisions along with the potential impact of certain policy options," the form reads. "This data will assist the Board in understanding how various policy reform options could affect the banking organization."
Banks are being asked to disclose information that is not shared through public filings or disclosures, the form notes. The Fed has vowed to keep bank-level information private to the extent
The information could be shared with the FDIC and OCC, but they would not be permitted to use it in a supervisory context, the form notes.
Participation by banks in the data collection effort would be voluntary.
Along with the outside voices calling for changes to the proposal, several members of the Fed's Board of Governors have also expressed concerns about the reforms, including Govs. Michelle Bowman and Christopher Waller,
In a speech this month, Bowman spoke about the importance of
"Before we undertake reforms intended to address issues that led to bank failures, we need to develop a comprehensive understanding not only of those root causes, but also of the costs and unintended consequences of potential reforms," she said. "Research can protect against over-reactive regulation, especially that which is not efficient, calibrated and tailored to address the actual risks and challenges facing the banking system."
While Barr has said the types of changes being considered in the endgame proposal might have mitigated the
Fed Vice Chair Philip Jefferson has also said
"I will evaluate any future proposed final rules on their merits. My views on any proposed final Basel III endgame requirements for U.S. banking organizations will be informed by the potential impact on banking sector resiliency, financial stability and the broader economy stemming from the implementation," Jefferson said during an open meeting about the proposal in July. "I look forward to reading and digesting the comments we received from the public, which will inform my future decision on any eventual proposed final approvals."