Agencies Finalize Changes to Supplementary Leverage Ratio

The Federal Reserve, FDIC and the OCC have finalized changes to the supplementary leverage ratio calculation under the regulatory capital rule. The final rule will allow banks that are primarily engaged in custody, safekeeping and asset servicing activities to exclude from the SLR calculation funds deposited with central banks.

The changes will apply to three institutions: the Bank of New York Mellon Corporation, Northern Trust Corporation and State Street Corporation, as well as their subsidiaries. The final rule takes effect April 1.