How Capital Markets May Be Affected by the US Basel Endgame Proposal

In late July 2023, US banking agencies released proposals to significantly revise the risk-based regulatory capital requirements for certain midsize and larger US banking organizations, and change how the capital surcharge is calculated for global, systemically important banking organizations. These proposals are critical, as the amount of capital a bank must maintain with respect to any particular loan, investment or activity is typically a significant—if not the most significant—factor in determining whether the relationship is profitable or even feasible. The proposals are not “capital neutral,” and would effectively increase the need for capital in a number of important respects. Please join Mayer Brown partners Anna Pinedo and Matt Bisanz as they discuss the implications of the Basel Endgame Proposal on capital markets and related activities.