A 10 a.m. open meeting where regulators would discuss a draft proposed rule to revise regulatory capital requirements for global systemically important banking organizations (GSIBs) didn’t happen Thursday, according to a notice issued by email roughly a half-hour after the open meeting was set to begin.
“After consultation among Board members, the Federal Deposit Insurance Corporation decided to handle today’s Board matters notationally,” according to the notice from the Federal Deposit Insurance Corp. (FDIC). “Related materials will be available on the Board Matters webpage.”
No results or documents related to Thursday’s open meeting agenda appear to have been posted yet, and there is no reference to any board meeting or discussion having occurred.
The Federal Reserve Board approved issuing the proposal for comment Wednesday. The vote was 5-2, with Fed Board Govs. Michael Barr (formerly the Fed’s vice chair for supervision) and Adriana Kugler casting the dissenting votes. Voting in favor were Fed Chair Jerome (“Jay”) Powell, Vice Chair Philip Jefferson, Vice Chair for Supervision Michelle Bowman, Gov. Lisa Cook, and Gov. Christopher Waller.
Rodney Hood, acting comptroller at the Office of the Comptroller of the Currency (OCC), approved and released it Wednesday.
The proposal focuses on the enhanced supplementary leverage ratio (eSLR) buffer standard for GSIBs and corresponding alignment of total loss-absorbing capacity (TLAC) and long-term debt requirements. Key changes would:
- Modify the 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 TLAC and long-term debt requirements (set by the Fed Board) to maintain alignment between these requirements and the eSLR standards.
The proposal is expected to be published in the Federal Register, with comments due in 60 days, once all three agencies are signed on.
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