U.S. Eases Bank Capital Rules as Operational Risks Mount

The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency proposed the Basel III Endgame in July 2023. The plan was initially estimated to raise capital requirements by an average of about 16% for banks with more than $100 billion in assets. The industry argued that it would constrain lending and market-making, while regulators stressed that capital provides a buffer against financial and operational losses.

In June 2025, the three agencies proposed easing the enhanced supplementary leverage ratio. The plan would lower the threshold for the parent companies of global systemically important banks from 5% to about 3.5%–4.5%, and for their bank subsidiaries from 6% to 4%. Meanwhile, Deloitte estimates that U.S. losses from generative AI fraud will rise from $12.3 billion in 2023 to $40 billion in 2027, underscoring the need for banks to offset looser capital constraints with internal controls, self-discipline and cybersecurity investment.