The Federal Reserve voted to propose a rule that would impose a capital surcharge for the largest U.S.-based global systemically important banks. The rule would require substantially higher capital levels for G-SIBs than those required by Basel III.
The proposal would currently apply to the eight U.S. G-SIBs as designated by the Basel, Switzerland-based Financial Stability Board. However, the rule would require U.S. banks with more than $50 billion in assets to calculate a measure of their potential significance. The proposal also includes methods of calculating the surcharges that would result in capital surcharges ranging from 1% to 4.5% of total risk-weighted assets.
When finalized, the rule will be phased in between January 2016 and January 2019. Comments are due by Feb. 15, 2015.
Read the proposed rule.