Davis Polk partner and Financial Institutions head Margaret Tahyar was quoted in Global Banking Regulation Review on the outlook of 2023 banking regulations in the U.S. Discussing the implementation of Basel III, Margaret said, “We have this concept of tailoring, where the bigger you are, the stricter your potential capital requirements, which was legislated in 2018 and implemented under the Quarles era.” She continued, “Everybody's kind of holding their breath to know which components of the tailoring may or may not be adjusted, and whether there'll be an adjustment in the enhanced supplementary leverage ratio.”

She noted that “it's taken the Biden administration a long time to get their principals in.” Noting that the FDIC’s full slate of directors has only now taken office in January 2023, Margaret said, “It’s been slow to start in terms of the Biden regulatory reform agenda. That said, we had a pandemic and a lot of things going on since 2020.” 

Margaret also mentioned that other items on the agenda in 2023 include guidelines for bank mergers and resolution plans for regional banks. “2023 is going to be a pretty heavy year for the U.S. banking regulators,” she said.

What’s in store for 2023? Part three: regional issues,” Global Banking Regulation Review (January 18, 2023) (subscription required)