Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies; Systemic Risk Report (FR Y-15); Extension of Comment Period

As previously announced by the Board of Governors of the Federal Reserve System (FED), the regulator has now published in the Federal Register the extended 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 is extending 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.