Regulatory Alerts2025-12-01 | 2025-21626Regulatory Capital Rule: Modifications to Enhanced Supplementary Leverage Ratio Standards for U.S. GSIBs and Subsidiary Depository Institutions; TLAC and Long-Term Debt Requirements
The Office of the Comptroller of the Currency, Federal Reserve Board, and FDIC have issued a final rule modifying enhanced supplementary leverage ratio standards for U.S. global systemically important bank holding companies and their subsidiary depository institutions. These modifications recalibrate leverage buffers to ensure the standards function as a backstop to risk-based capital requirements, thereby reducing disincentives for participating in low-risk, low-return activities. The agencies also finalize conforming amendments to total loss-absorbing capacity and long-term debt requirements, update regulatory reporting forms, and set an April 1, 2026 effective date with optional early adoption.
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