Federal Policy
Federal Agencies Propose Banking Regulation Reforms
March 23, 2026
Federal banking regulatory agencies including the FDIC, Federal Reserve Board, OCC, and Treasury have jointly proposed significant reforms to modernize the regulatory capital framework and liquidity coverage ratio (LCR) requirements. These proposals aim to streamline capital requirements, particularly easing burdens on smaller banks, while implementing final Basel III standards for the largest institutions. Additionally, Treasury and Federal Reserve officials advocate revising liquidity rules to better recognize borrowing capacity tied to the Fed's discount window, addressing concerns that current regulations overly restrict banks' lending abilities during stress periods.
- These reforms indicate a shift toward balancing regulatory safety with enhanced lending flexibility, which may impact bank compliance strategies and risk management practices.
- Procurement professionals supporting financial institutions should anticipate evolving regulatory requirements that could affect demand for compliance consulting, risk assessment tools, and liquidity management solutions.
- Contractors offering technology or advisory services related to capital adequacy and liquidity reporting may find new opportunities as banks adjust to updated frameworks.
- Engagement with federal agencies in Washington, D.C., where these regulatory bodies are headquartered, will be critical for staying informed on final rulemaking and implementation timelines.
The proposals would streamline capital requirements and better align regulatory capital with risk while maintaining the safety and soundness of the banking system.
— Federal bank regulatory agencies
The Fed's discount window is a critical but underutilized tool, with fragmented rules and above-market interest rates discouraging its use when needed most.
— Michelle Bowman
Bank liquidity is the next big-ticket item for regulatory reform, with post-crisis liquidity regulation being an inevitable overcorrection that limits banks' ability to lend.
— Jonathan McKernan
Agencies
Federal Deposit Insurance Corporation, Federal Reserve Board, Office of the Comptroller of the Currency, U.S. Department of the Treasury, Federal Reserve