Many of the Basel III requirements will not apply to smaller banks – including the countercyclical capital buffer, supplementary leverage ratio, trading book reforms, AOCI flow through, higher capital requirements for counterparty credit risk on derivatives, and  4  For approvals granted by the Board for www.federalreserve.gov/bankinforeg/716f-requests.htm.
Importantly, we are also working on an additional proposal, known as the standardized approach, to offer non-core banks a set of regulatory capital requirements that have more risk sensitivity than the current Basel I rules, but less complexity than the advanced approaches in the Basel II final rule.