US Federal Reserve proposes sweeping updates to bank and capital regulations

The Federal Reserve, together with the FDIC and OCC, released a proposal to modernize the regulatory framework for mutual banks, expanding access to capital and removing restrictions on converting to stock companies. A revised compliance guide for the Community Bank Leverage Ratio was also issued. In related developments, FinCEN Director Andrea Gacki announced her departure to become global head of sanctions at Citi.

Separately, the Board of Governors and other US banking agencies published a draft of the US Basel III rules for 2026. The International Swaps and Derivatives Association (ISDA) highlighted that the proposal would raise market‑risk capital by about 89 % under a fully standardized approach, or roughly 30 % under a blended model, potentially increasing costs for trading and capital‑market activities. ISDA called for targeted adjustments to improve risk sensitivity while preserving system safety.