Fed Announces Individual Capital Requirements for Large Banks

The Federal Reserve today announced individual capital requirements for banks with more than $100 billion in total consolidated assets. The requirements were determined in part by the results of the Fed’s supervisory stress tests.

The total common equity tier 1 capital requirement for each bank is made up of several components, including a minimum CET1 capital requirement for all banks of 4.5%; a stress capital buffer that is determined from the supervisory stress test results and is at least 2.5%; and, if applicable, a capital surcharge for global systemically important firms of at least 1%.