Substantial new G-Sib capital requirements unveiled

Author: Edward Price | Published: 6 Jun 2016

Federal Reserve governor Jerome Powell has revealed what he described as substantial new capital requirements for the largest US banks, noting that the G-Sib (global systemically important banks) surcharge is to be incorporated into the annual comprehensive capital analysis and review (CCAR) bank stress tests.

At an event hosted by the Securities Industry and Financial Markets Association (Sifma) and The Clearing House (TCH), Powell spoke about the post-crisis bank regulatory framework, including progress on ending too big to fail. 

"It is likely, I believe, that we will incorporate the full amount of the surcharges into the post-stress minimum requirements," Powell said. "It is also likely it will not be a dollar-for-dollar increase in capital requirements, but it will be a substantial increase in the requirements," he said, adding that there would likely be some offsets. "There’s not much I can say about the timing."...