Federal Reserve considers updating GSIB surcharge inputs for US's largest banks, potentially reducing capital surcharges.
The Federal Reserve is considering a rule change that could save US's eight largest banks billions in capital. The central bank is considering updating inputs used in the calculation of the GSIB surcharge, a 2015-introduced extra layer of capital for US global systemically important banks. The updated inputs would adjust for economic growth, more accurately reflecting the size of banks relative to the global economy. This could lead to reduced banks' systemic scores and lower capital surcharges.
July 09, 2024
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