FRB Adopts Rule on Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies (Fed. Reg.)

The Board of Governors of the Federal Reserve System ("FRB") adopted a final rule that establishes risk-based capital surcharges for the largest, most interconnected U.S.-based bank holding companies pursuant to section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This rule requires a U.S. top-tier bank holding company that is an "advanced approaches institution" to calculate a measure of its systemic importance. A bank holding company whose measure of systemic importance exceeds a defined threshold would be identified as a global systemically important bank holding company and would be subject to a risk-based capital surcharge.

The final rule is effective December 1, 2015.

See: 80 FR 49082: FRB Implementation of Risk-Based Capital Surcharges for Systemically Important Bank Holding Companies.Related news: OFR Compares U.S. and International Systemically Important Banks (August 4, 2015); Senator Shelby Challenges $50 Billion Threshold for Determining Banks to be of Systemic Importance (July 24, 2015); Senate Banking Committee Holds Hearing on Measuring the Systemic Importance of U.S. Bank Holding Companies (with Delta Strategy Group Summary) (July 23, 2015).