Basel III Endgame Comment Deadline Draws Industry Support; Groups Seek Further Capital Adjustments

On June 18, the Federal Reserve received comments on its revised Basel III Endgame proposal from major financial industry groups including ISDA, SIFMA, IIF, and FIA. The organizations broadly support regulators' direction while urging additional refinements before finalization.

The revised framework would reduce large-bank capital requirements by approximately 4.8% compared with current levels, down from the original 2023 proposal that sparked fierce opposition. According to Reuters, the combined effect of proposed changes could reduce capital requirements by approximately $22 billion across the largest U.S. institutions. Industry groups are now focused on technical areas they believe still overstate economic risk, particularly in Treasury market liquidity and derivatives clearing incentives.