Agencies extend comment period on proposed rules to strengthen large bank capital requirements

The Board of Governors of the Federal Reserve System (FED) has published a press release in which it informs of the extension of the deadline for the submission of comments on its proposed adjustments to the calculation of the capital surcharge for the largest and most complex banks. Specifically, the FED seeks to extend the deadline from November 30, 2023 to January 16, 2024 to allow interested parties more time to review the proposed adjustments and prepare their responses.
To recall, the proposed changes would better align the surcharge to each bank’s systemic risk profile, particularly by measuring a bank’s systemic importance averaged over the entire year, instead of only at the year-end value, and by re-defining certain risk-weights to determine the overall risk and thus the applicable surcharge. We recommend to review EventID 22526 in this context for more detailed information.
Also, the FED informs of the extension of the deadline for comments on proposed modifications to the capital requirements of large financial institutions in the U.S. (please see EventID 22526 and EventID 23018 for more information on the proposed changes). The proposal was part of a joint consultation by the FED, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Company in an effort to enhance the resilience of large banking organizations. More information on this deadline extension may be found in Event ID 23441.