Draft proposed regulatory capital modifications for global systemically important banking organizations (GSIBs), slated for discussion Thursday of the Federal Deposit Insurance Corp. (FDIC) Board, were released Wednesday with a statement of support by the acting comptroller of the currency.
The draft proposal, released by Rodney Hood, acting head of the Office of the Comptroller of the Currency (OCC), is a document drafted as a joint proposal to revise GSIB and subsidiary capital requirements set by the OCC, FDIC, and Federal Reserve Board. A summary in the draft says the proposal would:
- Modify the enhanced supplementary leverage ratio (eSLR) buffer standard applicable to GSIBs to equal 50% of the bank holding company’s method 1 surcharge as determined by the Fed Board’s GSIB risk-based capital surcharge framework.
- Modify the eSLR standard for depository institution subsidiaries of GSIBs to have the same form and calibration as the GSIB parent level standard.
- Revise total loss-absorbing capacity and long-term debt requirements (set by the Fed Board) to maintain alignment between these requirements and the eSLR standards.
The notice says the OCC “is proposing to revise the methodology it uses to identify which national banks and Federal savings associations are subject to the enhanced supplementary leverage ratio standards to better align with the agencies’ regulatory tailoring framework for large banking organizations and ensure that the standards apply only to those national banks and Federal savings associations that are subsidiaries of a GSIB.”
Thursday’s FDIC Board meeting is set for 10 a.m. Eastern.
Leave a Reply