The House Financial Services Committee considered testimony from witnesses on the impact of, and interaction between, recent regulatory banking proposals to implement Basel standards and increase capital requirements.

The House Financial Services Committee heard testimony on a joint proposal from the Federal Reserve Board, FDIC and OCC that would increase bank capital requirements consistent with standards issued by the Basel Committee on Banking Supervision.

Several banking associations urged the Federal Reserve Board, the FDIC and the OCC to make public all data and analyses used to develop the recently proposed amendments on capital requirements for large banking organizations.

The Congressional Research Service reviewed (i) how proposed amendments to bank capital rules would change the capital treatment of unrealized losses on the debt securities that large banks hold as assets and (ii) policy considerations on unrealized capital losses post the collapse of Silicon Valley Bank.

The OCC, the Federal Reserve Board and the FDIC proposed long-term debt requirements for large banking entities, holding companies, foreign banking organizations and large insured depository institutions to facilitate resolvability in the event of failure and to reduce the risk of contagion within the financial system.