Revised Basel output floor could hit US banks after all
Fall in operational risk weights could push up capital requirements for market and credit risk
US banks are being warned the floor on internal capital models already enforced by the US Collins Amendment to the Dodd-Frank Act will not necessarily prevent the new Basel floor from having an impact on their capital consumption.
US regulators had consistently shown far greater enthusiasm for the Basel output floor, finalised on December 7, under which banks must hold enough capital to meet 72.5% of all risks calculated using the standardised approaches.
European regulators suspected this was
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