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

Following the results of recently conducted stress tests, the Board of Governors of the Federal Reserve System (FED) announced the new capital requirements of large institutions in the U.S., which are those institutions with total consolidated assets of more than $100 billion. These capital requirements include
a) a tier one minimum capital buffer of 4.5% for all institutions;
b) an individual capital buffer based upon a bank’s stress test results with a minimum buffer of 2.5%; and
c) an individual additional capital buffer for systemically important institutions.
A corresponding list of all affected institutions and their individual capital requirements is enclosed in the announcement. The new rates will be effective October 1, 2023.
Furthermore, the FED notes that the stress test results of two participating banks, namely the Bank of America Corporation and the Bank of New York Mellon Corporation, have been revised following erroneous submissions in the test. The revisions, so the FED, had no impact on their capital requirements outlined in the list.