At a hearing, the U.S. House Committee on Financial Services reviewed how prudential regulators are tailoring bank and credit union regulation to institutions' size, complexity and risk profile. Committee leaders argued that recent and proposed changes should make the framework more proportionate and reduce barriers to lending, mortgage servicing and capital markets activity while preserving financial stability, and they presented the Main Street Capital Access Act as a legislative complement to that approach. Discussion focused on the revised Basel III endgame proposal, the treatment of mortgage servicing assets in common equity tier one capital, and calls to index the thresholds that trigger enhanced prudential standards. Regulators pointed to measures already completed or underway, including finalized community bank leverage ratio reforms that set the ratio at 8 percent and extend the grace period for returning to compliance from two to four quarters, the Office of the Comptroller of the Currency's work to codify supervisory standards and respond to comments on its GENIUS Act proposal, the National Credit Union Administration's 15 May 2026 proposed rule on permitted payment stablecoin issuer standards, and the Federal Deposit Insurance Corporation's shift toward supervision focused on material financial risks.
U.S. Financial Services Committee2026-06-05
U.S. House Committee on Financial Services examines tailored prudential rules and capital reforms with banking regulators
The U.S. House Financial Services Committee held a hearing on how prudential regulators tailor bank and credit union rules to size, complexity, and risk, promoting a more proportionate framework and highlighting the Main Street Capital Access Act. Discussion covered the revised Basel III endgame proposal, mortgage servicing assets in common equity tier one capital, indexing thresholds for enhanced prudential standards, community bank leverage ratio reforms, the OCC’s codification of supervisory standards, the NCUA’s proposed rule on permitted payment stablecoin issuer standards, and the FDIC’s shift toward supervision focused on material financial risks.