The Board of Governors of the Federal Reserve System (Board) is inviting public comment on a notice of proposed rulemaking to amend the Board’s rule that identifies and establishes risk-based capital surcharges for U.S. global systemically important bank holding companies (GSIBs). The proposal would also amend the Systemic Risk Report (FR Y-15), which is the source of inputs to the implementation of the GSIB framework under the capital rule. The proposal would make several changes to better align surcharges with risk. First, it would modify certain coefficients used to calculate GSIB surcharges under method 2 of the ... (full story)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are proposing to modernize the capital requirements applicable to Category I and II depository institution holding companies and depository institutions, as well as revise the market risk capital framework for banking organizations with significant trading activity (the proposal). The proposal would improve the regulatory capital framework for covered banking organizations by enhancing its risk sensitivity and consistency and by simplifying core components of i (full story)

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are proposing to modify certain aspects of the regulatory capital rule (the proposal). The proposal would revise the riskbased capital treatment of certain exposure categories under the standardized approach, focusing on improving the calibration and risk sensitivity of risk weights that are particularly material to covered banking organizations’ lending activities. The proposal wou (full story)

Welcome, everyone who is joining us both in person and online to this open meeting of the Federal Reserve Board. Thank you in advance to the staff for your presentations today and thank you to everyone who worked to bring these proposals together. In the wake of the global financial crisis, regulators, including the Fed, increased the quantity and quality of loss-absorbing capital required of banks, including through stress testing requirements and an additional surcharge for the largest and most complex banks. This action substantially increased the banking system’s resilience. However, it has been almost two ... (full story)

Thank you, Chair Powell. I would like to begin by thanking our staff—here at the Board and at the other federal bank regulatory agencies—and the FDIC chair and OCC comptroller for all of the work that went into the interagency and Fed proposals. The Board members who serve on the Committee on Supervision and Regulation—Philip and Chris—also played an important role in providing feedback that enhanced the proposals, so I would like to recognize those contributions, as well. And as the Board is well aware, these are complex, lengthy and detailed proposals. I appreciate our Board Members’ willingness to (full story)