Regulatory Alerts2025-06-27 | FIL-25-2025Notice of Proposed Rulemaking on Modifications to the Enhanced Supplementary Leverage Ratio (eSLR) Standards
The Office of the Comptroller of the Currency, Federal Reserve, and FDIC propose recalibrating enhanced supplementary leverage ratio (eSLR) standards for US global systemically important bank holding companies and their depository subsidiaries from 5 or 6 percent to 3 percent plus half of the parent’s Method 1 GSIB surcharge. The agencies simultaneously align total loss-absorbing capacity leverage buffers and long-term debt requirements with the revised eSLR framework to eliminate disincentives for low-risk activities like Treasury market intermediation. Meeting the updated thresholds will directly govern capital distribution limits and discretionary bonus payments, with conforming adjustments to leverage-based buffers taking effect upon finalization.