Significant Increase in Capital Requirements for U.S. GSIBs

October 5, 2016

On September 26, 2016, Federal Reserve Board Governor Daniel Tarullo delivered a speech outlining significant planned changes to the Federal Reserve’s supervisory stress testing regime.

Many of these changes would continue to ratchet up effective capital requirements for the eight U.S. global systemically important banking organizations (GSIBs). These changes also appear intended to make ongoing capital requirements more dynamic by incorporating the effect of the stress tests into everyday capital adequacy.