The Federal Reserve voted to finalize a rule imposing capital surcharges on the largest U.S.-based global systemically important banks. The plan requires substantially higher capital levels for G-SIBs than those required by Basel III. The rule applies to the eight U.S. G-SIBs as designated by the Basel, Switzerland-based Financial Stability Board.
Banks subject to the rule would use the higher surcharge of two calculation methods. Based on current figures, surcharges on U.S. banks would range from 1% to 4.5%. In addition to the surcharges on G-SIBs, the rule would require U.S. banks with more than $50 billion in assets to calculate a measure of their potential significance. It phases in from Jan. 1, 2016 through the end of 2018.
Read the final rule.