FRB proposes amendments to GSIB surcharge rule

April 7, 2016

The proposed amendments to the GSIB surcharge rule would require GSIB holding companies to hold additional amounts of risk-based capital.  The proposal states that a bank holding company (BHC) subject to the GSIB surcharge rule would continue to calculate its method 1 and method 2 GSIB surcharge scores annually using data as of December 31 of the previous calendar year, even though the data will be due quarterly.  This would begin with the June 30, 2016, report.

In addition, the proposed rule would clarify that a BHC subject to the GSIB surcharge rule is required to calculate its method 2 GSIB surcharge score using systemic indicator amounts expressed in billions of dollars even though the data is reported in millions of dollars.

The preamble to the proposed rule also provides clarifying information on how a covered BHC should calculate its short-term wholesale funding score for purposes of calculating its method 2 score under the GSIB surcharge rule.

 

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