Regulatory Capital: Standardized Approach for Risk-Weighted Assets

Summary

On March 19, 2026, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) issued a joint notice of proposed rulemaking to revise the regulatory capital requirements applicable to banking organizations that are not Category I or II banking organizations (the U.S. Standardized Approach). The proposed revisions would improve the calculation of risk-based capital requirements to better reflect the risks of these banking organizations’ exposures and facilitate more effective supervisory and market assessments of capital adequacy.

Concurrent with this proposal, the agencies are issuing a separate proposal that would introduce a new expanded risk-based approach (ERBA) applicable to Category I and II banking organizations. Non-Category I and II banking organizations that would otherwise be subject to the revised requirements set forth in this proposal would have the option to use the ERBA instead.

The OCC encourages stakeholders to review the proposed rule and provide comments before the close of the comment period on June 18, 2026.

Highlights

• The proposal would improve the calibration and risk sensitivity of risk weights for certain traditional lending activities of banking organizations while maintaining the capital framework’s simplicity.
• The proposed U.S. Standardized Approach includes revised risk-based capital requirements for residential mortgages, corporate exposures, and several other asset categories. The proposal would reduce the risk weight applicable to corporate exposures from 100 percent to 95 percent and the risk weight applicable to certain other assets from 100 percent to 90 percent. The proposal would also introduce a broader range of risk weights for most residential mortgages based on more granular risk factors.
• The proposal would remove the required deduction from regulatory capital for concentrations of mortgage servicing assets (MSA). This feature of the proposal would apply to banking organizations that opt into the community bank leverage ratio framework. For banking organizations that calculate risk-based capital requirements (i.e., those that do not qualify for or chose not to apply the community bank leverage ratio), the proposal would apply a 250 percent risk weight to all MSAs.
• Additionally, the agencies are proposing to require Category III and IV banking organizations (i.e., all banking organizations with at least $100 billion in total consolidated assets) to recognize most elements of accumulated other comprehensive income, including unrealized gains and losses on available-for-sale securities, in their regulatory capital, subject to a transition period.

Further Information

Please contact Venus Fan, Risk Expert, or Benjamin Pegg, Technical Expert, Capital Policy, at (202) 649-6370; or Carl Kaminski, Assistant Director, or Kevin Korzeniewski, Counsel, Chief Counsel’s Office, at (202) 649-5490.

Adam J. Cohen
Senior Deputy Comptroller and Chief Counsel

Related Link

• Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-Weighted Assets (PDF)