International, voluntary regulatory capital standards for banks are developed by the Basel Committee on Banking Supervision. The most recent round of updates, referred to as Basel III, has been in an implementation cycle since 2013.

Since 2015, the risk-based capital category High Volatility Commercial Real Estate Exposures (HVCRE) for commercial acquisition, development, and construction (ADC) loans has been the standard. Under it, the risk-weight for an ADC loan is 150% - an increase from the pre-HVCRE level of 100%.  Legislation has been introduced in the 115th Congress to resolve confusion among lenders related to the application of the HVCRE risk-weight and its exceptions.  In addition, the Federal Banking Agencies (the Federal Reserve, the FDIC, and the OCC) issued a notice of proposed rulemaking in late 2017 to replace HVCRE with a new risk-weight category – High Volatility Acquisition, Development, and Construction, or HVADC. The proposed category would have a lower risk-weight of 130%, but would remove several exceptions found in HVCRE, thus increasing the number of loans it applies to.