Philip Alexander

The US Basel III redraft of March 2026 has mainly drawn praise from banks for toning down capital impact, as compared with the July 2023 iteration. But a breaking ball has caught the major US banks off balance: the addition of a capital requirement for credit facilities that can be unconditionally cancelled – a demand that could incur extra costs on a range of wholesale and retail lending. “That was a surprise, because these are essentially not legally binding commitments,” says a capital expert

By The US Basel III redraft of March 2026 has mainly drawn praise from banks for toning down the capital impact compared with an earlier version published in July 2023. But a breaking ball has caught the major US banks off balance: the addition of a capital requirement for credit facilities that can be unconditionally cancelled - a demand that could incur extra costs on a range of wholesale and retail

By Generative and agentic artificial intelligence could ultimately run much of the credit stress-testing process end to end, according to risk managers - but humans will still need to be accountable for the decision-making. "There are conversations around teaching GenAI how to think through your portfolio, come up with your scenario design, your scenario analysis, test it, even do model validation,"