Regulatory Alerts2019-04-08 | 2019-06344Regulatory Capital Treatment for Investments in Certain Unsecured Debt Instruments of GSIBs
The OCC, Federal Reserve, and FDIC propose rules requiring advanced approaches banking organizations to deduct investments in certain unsecured debt instruments issued by global systemically important banking organizations from their regulatory capital. This measure aims to reduce systemic risk and interconnectedness within the financial system by limiting capital holdings in debt instruments used to meet total loss-absorbing capacity requirements. The agencies also propose changes to regulatory reporting and public disclosure requirements for these institutions.
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