Annual Large Bank Capital Requirements
Under the Federal Reserve Board's capital framework for bank holding companies, covered savings and loan holding companies, and U.S. intermediate holding companies with $100 billion or more in total consolidated assets, capital requirements are in part determined by the supervisory stress test results. Table 1 shows the total common equity tier 1 (CET1) capital ratio requirement for each large bank, which is made up of several components, including
- a minimum CET1 capital ratio requirement of 4.5 percent, which is the same for each bank;
- the stress capital buffer (SCB) requirement, which is determined from the supervisory stress test results and is at least 2.5 percent;1 and
- if applicable, a capital surcharge for global systemically important banks (G-SIBs), which is at least 1.0 percent.
1. See 12 C.F.R. §§ 225.8(f) and 238.170(f) for rules on the SCB requirement calculation and 2022 Federal Reserve Stress Test Results (Washington: Board of Governors, June 2022) https://www.federalreserve.gov/publications/files/2022-dfast-results-20220623.pdf for details on the 2022 supervisory stress test results. Firms subject to Category IV requirements are generally not required to participate in the supervisory stress test in odd years. This year, Category IV firms were required to participate in the supervisory stress test. SCB requirements reflect 2022 stress test results. Return to text