Wall Street Says Basel 3 ‘Endgame’ Will Hurt Climate Finance

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Wall Street’s biggest banks are warning that existing assumptions around much-needed green finance will no longer hold if the US goes ahead with stricter capital requirements.

The Basel 3 Endgame, as the planned rules have been dubbed, marks the final implementation stage in the US of regulations created after the financial crisis of 2008. Banks will need to set aside more capital, which will make it costlier for them to provide finance. Proposed in July by a group of US authorities that includes the Federal Reserve, the rules will “fundamentally alter” how banks in the world’s biggest economy approach risk, EY says.

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