Proposed amendments to capital plan, CCAR rules, eSLR and TLAC
Proposed amendments to capital plan, CCAR rules, eSLR and TLAC
Insight

Proposed amendments to capital plan, CCAR rules, eSLR and TLAC

The proposal would be effective Dec. 31, 2018. Stress buffer requirements will effective Oct. 1, 2019.

On April 10, 2018, the Federal Reserve Board (FRB) requested comments on proposal to simplify capital rules. And on April 11, 2018, the FRB along with the Office of the Comptroller of the Currency (OCC) proposed modifications to enhanced Supplementary Leverage Ratio (eSLR) and Total Loss-absorbing Capacity (TLAC) requirements applicable to Global Systemically Important Bank Holding Companies (GSIBs) and Insured Depository Institutions (IDI). The objectives of the proposals are to:

  • Simplify capital rules for large banks while preserving strong capital levels.
  • Address inconsistencies between assumptions in stress test and distribution limitations in capital rules.
  • Reduce the burden for smaller, less complex firms subject to supervisory stress tests.

Impacts of the proposed amendments include more focus on spot capital ratios in determining stress buffers and capital requirements and reduced number of capital requirements for large BHCs.