2025-12-01 | 2025-21626

Regulatory Capital Rule: Modifications to Enhanced Supplementary Leverage Ratio Standards for U.S. GSIBs and TLAC Requirements

The OCC, Federal Reserve, and FDIC are adopting a final rule to modify the enhanced supplementary leverage ratio standards for U.S. global systemically important bank holding companies and their subsidiary depository institutions. These modifications aim to ensure the leverage ratio serves as a backstop to risk-based capital requirements rather than a frequently binding constraint, thereby reducing disincentives for participating in low-risk activities. The Board is also finalizing conforming amendments to total loss-absorbing capacity and long-term debt requirements alongside technical corrections to the capital rule.

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