Fed sets individual large-bank capital requirements effective Oct. 1

The 31 large banks that were subject to this year’s Federal Reserve stress tests will have the same 4.5% minimum capital requirement and a stress capital buffer requirement of at least 2.5% as of Oct. 1, the Fed announced, with global systemically important banks (G-SIBs) subject to an additional capital surcharge.

The G-SIB surcharge is updated the first quarter of each year to account for the institutions’ overall systemic risk, the Fed said in its release Friday. The surcharge, based on this year’s stress test, will apply to Bank of America Corporation, The Bank of New York Mellon Corporation, Citigroup Inc., The Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, State Street Corporation, and Wells Fargo & Company.

Federal Reserve Board announces final individual capital requirements for large banks, effective on October 1