Federal Reserve Board Chair Jerome H. Powell delivered opening remarks at the Integrated Review of the Capital Framework for Large Banks Conference, setting out a comprehensive approach to assessing how the main elements of the US bank capital framework work together. He highlighted that the review spans risk-based capital requirements, leverage requirements, the surcharge for the largest and most complex banks, and stress tests, with proposals outstanding or in development across all four areas. Powell emphasised that the capital framework and other banking rules are implemented through supervision, and argued supervisory practices should focus on critical drivers of safety and soundness. He framed the objective as keeping large banks well capitalised and managing key risks while remaining able to compete with one another, with nonbank financial firms, and with banks in other jurisdictions, and invited feedback and new ideas from conference participants.
Federal Reserve Board 2025-07-22
Federal Reserve Board opens conference to integrate review of the capital framework for large banks
Federal Reserve Chair Jerome H. Powell outlined a review of the US bank capital framework at the Integrated Review of the Capital Framework for Large Banks Conference. The review covers risk-based capital requirements, leverage requirements, surcharges for large banks, and stress tests, with ongoing proposals. Powell emphasized the importance of supervisory practices in maintaining bank safety and competitiveness and invited feedback from participants.