JPM · 10-Q · 2026Q2 · Full report

Regulatory Risk

JPMORGAN CHASE & CO · 2026-08-06 · Importance 59 · Surprise 60 · In source text

In March 2026, the Federal Reserve, OCC and FDIC proposed replacing the dual Basel III Advanced and Standardized RWA calculations with a single expanded risk-based approach and adding operational-risk RWA; JPMorgan estimates the proposal would increase required CET1 capital by approximately 6% based on December 31, 2025 positions. The concurrent GSIB Surcharge Re-Proposal would reduce the Firm’s estimated 5.5% surcharge effective January 1, 2028 to 5.2%, producing an estimated combined CET1 capital requirement increase of approximately 4% versus current rules effective in 2028. JPMorgan early adopted the enhanced Supplementary Leverage Ratio final rule on January 1, 2026, replacing static leverage buffers with dynamic buffers tied to the U.S. Method 1 GSIB surcharge. The Federal Reserve’s 2026 stress-test scenarios were finalized in February 2026, with JPMorgan’s 2.5% Stress Capital Buffer remaining in effect through September 30, 2027; the U.K. PRA also expects to delay final Basel III implementation until January 1, 2027 with a three-year transition for certain requirements.

Key facts

• The Firm early adopted the enhanced Supplementary Leverage Ratio final rule effective January 1, 2026. source
• Based on the Firm's understanding of the U.S. Basel III Re-Proposal as 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 the U.S. Basel III Re-Proposal and GSIB Surcharge Re-Proposal 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
• If the GSIB Surcharge Re-Proposal were adopted as proposed, the Firm estimates that its 5.5% GSIB surcharge would be reduced to 5.2%. source

Impact estimates