The Federal Reserve and other U.S. banking agencies are moving to finalize regulations to implement Basel 2.5 in the United States and soon will be proposing regulations to implement Basel III.
These significant changes to the international regulatory capital framework have been supplemented by an important element of the Dodd-Frank Act known as the “Collins Amendment.” The Collins Amendment provides a safeguard against declines in minimum capital requirements in the Basel II capital regime based on bank internal modeling.