February 18, 2025 (NO COMMENTS)

Large banks in the US are contemplating a last-ditch effort to save regulatory capital models for credit risk, as the new Republican presidential administration sets the stage for a potentially far-reaching review of draft capital rules proposed by Democratic regulators.

When the US prudential agencies set out their suggested version of the Basel Committee on Banking Supervision’s post-crisis framework in July 2023 – dubbed the Basel III endgame – they advocated removing the internal ratings