Key facts
- US regulators have introduced a new capital requirement for credit facilities that can be unconditionally cancelled.
- This change is part of the revised Basel III capital rules set to take effect in March 2026.
- The addition was unexpected and has caught major US banks off guard.
- The requirement could increase costs for banks offering wholesale and retail credit lines.
The latest draft of the US Basel III capital requirements, slated for implementation in March 2026, has largely been met with approval from major US banks. This version is seen as less impactful on capital requirements than an earlier iteration published in July 2023. However, a significant and unexpected change has emerged: the inclusion of a capital requirement for credit facilities that can be unconditionally cancelled by the lender. This new demand could impose additional costs on banks for a range of wholesale and retail lending products.