Regulatory Alerts2025-07-10 | 2025-12787Modifications to Enhanced Supplementary Leverage Ratio and TLAC Standards for U.S. GSIBs
The OCC, Federal Reserve Board, and FDIC propose modifying the enhanced supplementary leverage ratio (eSLR) standards for U.S. global systemically important bank holding companies and their subsidiary depository institutions to recalibrate the eSLR buffer at 50 percent of the GSIB method 1 surcharge. These adjustments align subsidiary depository institution standards with parent GSIB levels and ensure the eSLR functions as a cyclical backstop rather than a frequently binding constraint, thereby reducing disincentives for low-risk Treasury market intermediation. The agencies also amend total loss-absorbing capacity and long-term debt requirements to maintain alignment with the revised eSLR framework while updating applicability thresholds for OCC-supervised national banks and Federal savings associations.