Comment deadline on FRB proposal to adjust rule on GSIB capital requirements

The Federal Reserve Board has published a proposed rule in today's Federal Register with technical amendments to its rule requiring global systemically important bank holding companies (GSIBs) to hold additional amounts of risk-based capital. The proposal would not materially change the underlying rule finalized by the Board in July 2015. That rule established the criteria for identifying a firm as a GSIB and the methodology a GSIB is required to use to determine its risk-based capital surcharge, which corresponds to the systemic risk of that firm. The proposed amendments clarify that GSIBs must continue to calculate their surcharges using year-end data, while their related surcharge data will be reported on a quarterly basis. The proposal also clarifies that these firms are required to compute their surcharge scores using billions of dollars. The amendments also provide additional information on how GSIBs should calculate their short-term wholesale funding scores, which help to determine their surcharges, during the rule's transition period. Comments will be accepted through May 13, 2016.