Fed’s revised Basel III proposal would cut big-bank core capital requirements by about 4.8%

The Federal Reserve released a revised Basel III proposal on March 19, 2024 that would lower core capital requirements for large banks by about 4.8% by reducing risk weights and freeing up capital. The proposal has completed a 90-day public comment period that ended June 18. With no major industry backlash, the rules are expected to be finalized soon. The change would directly improve capital efficiency and high-yield lending capacity for systemically important banks such as JPMorgan, Goldman Sachs and Morgan Stanley, creating a fundamental catalyst for related stocks.