US to propose Basel rule revisions this month: Report

US Federal Reserve and or regulators are set to unveil sweeping changes to a raft of proposed banks capital rules as soon as Sept. 19, Bloomberg News reported on Friday, citing people familiar with matter.

revisions could run up to 450 ps and would include key changes to rules that center on operational risk provisions including a reduction in capital that banks must allocate against business lines like wealth-manment services and certain credit-card operations, report ded.

new revised proposal would also reduce market-risk requirement for country's biggest lenders, which would t face as stringent requirements around mortgs or tax-equity exposures, report said.

Next Tuesday, Fed vice chair Michael Barr will preview regulators’ revised proposal and explain next steps at Hutchins Center on Fiscal & Monetary Policy, Brookings said in a blog post.

Regulators began rolling out Basel III rules after 2007-2009 global financial crisis forced taxpayers to bail out several undercapitalized banks.

In July 2023, Fed, Office of Comptroller of Currency, and Federal Deposit Insurance Corporation published for comment proposed changes to bank capital rules. rules are expected to overhaul how larger banks gauge risk and how much capital y should hold.

Banks, which fiercely opposed original "Basel III Endgame" proposal that would hike capital requirements for larger banks, have been calling for a re-proposal.

Regulators have been working for months on revising plan in a way that could significantly curtail capital impact for larger firms.

Fed declined to comment on report. FDIC and Office of Comptroller of Currency didn't immediately respond to Reuters requests for comment.