April 07, 2016

Federal Reserve Board proposes technical amendments to rule requiring global systemically important bank holding companies to hold additional amounts of risk-based capital

For release at 10:00 a.m. EDT

The Federal Reserve Board on Thursday proposed technical amendments to its rule requiring global systemically important bank holding companies (GSIBs) to hold additional amounts of risk-based capital. The proposal would not materially change the underlying rule finalized by the Board in July 2015.

The final rule established the criteria for identifying a firm as a GSIB and the methodology a GSIB is required to use to determine its risk-based capital surcharge, which corresponds to the systemic risk of that firm.

The proposed amendments clarify that GSIBs must continue to calculate their surcharges using year-end data, while their related surcharge data will be reported on a quarterly basis. The proposal also clarifies that these firms are required to compute their surcharge scores using billions of dollars. The amendments also provide additional information on how GSIBs should calculate their short-term wholesale funding scores, which help to determine their surcharges, during the rule's transition period.

Comments will be accepted by May 13, 2016.

For media inquiries, call 202-452-2955.

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Last Update: April 07, 2016