The Office of the Comptroller of the Currency, the board of governors of the Federal Reserve System and the Federal Deposit Corporation issued new rule proposals that would modify large bank capital requirements with the goal of better reflecting underlying risks and increasing risk measurement consistency across the banking industry.

The proposed rules would be applicable to banks with total assets of $100 billion or more and would implement the final components of the Basel III agreement, known as the Basel III endgame. The federal agencies are specifically addressing four aspects of the capital framework of banks: credit risk, market risk, operational risk and credit valuation adjustment risk.

The proposed rules also address the turbulence in the banking sector in March, applying a broader set of capital requirements to more larger banks, including requirements related to unrealized gains and losses for certain securities in capital ratios and compliance with the supplementary leveraged ratio requirement and the countercyclical capital buffer, if activated.

According to the agencies, there would be an aggregate 16% increase in common equity tier 1 capital requirements for banks as a result of the proposed rules, which would be implemented during a transition period ending with fully phased implementation by July 1, 2028.

The federal agencies are currently accepting comments on the proposed rules. The deadline to submit comments is Nov. 30.