JPM · 10-Q · 2026Q2 · Full report

U.S. Basel III Re-Proposal

JPMORGAN CHASE & CO · 2026-08-06 · Importance 70 · Surprise 68 · In source text

In March 2026, the Federal Reserve, OCC and FDIC proposed replacing the dual Advanced and Standardized risk-weighted asset calculations with a single expanded risk-based approach, generally eliminating internal models except for market risk and adding operational-risk RWA. Based on JPMorgan’s positions at December 31, 2025, the proposal would increase required CET1 capital by approximately 6%. The concurrent GSIB Surcharge Re-Proposal would change surcharge calculations to annual averages, reduce surcharge increments from 50 basis points to 10 basis points, and potentially reduce JPMorgan’s 5.5% surcharge to 5.2%. Together, the proposals are estimated to increase required CET1 capital by approximately 4% relative to the requirement scheduled under current rules for January 1, 2028, before mitigation actions.

Key facts

• Based on the Firm's understanding of the U.S. Basel III Re-Proposal applied to positions as of December 31, 2025, the estimated impact would be an increase to the Firm's required CET1 capital of approximately 6%. source
• The Firm expects that the U.S. Basel III Re-Proposal and the GSIB Surcharge Re-Proposal, taken together, would result in an increase in the Firm’s required CET1 capital of approximately 4% compared with the CET1 capital requirement that would become effective on January 1, 2028 under current rules. source
• As of June 30, 2026, the Advanced Total Capital ratio became the most binding constraint for the Firm’s Basel III risk-based ratios. source
• If the GSIB Surcharge Re-Proposal were adopted as proposed, the Firm estimates the 5.5% GSIB surcharge would be reduced to 5.2%. source

Impact estimates