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Home Compliance and Risk

Fed announces individual capital requirements for large banks

July 27, 2023
Reading Time: 1 min read
The Federal Reserve Board headquarters in Washington, D.C.

The Federal Reserve today announced individual capital requirements for banks with more than $100 billion in total consolidated assets. The requirements—which are effective Oct. 1—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, which is updated in the first quarter of each year to account for the overall systemic risk of each GSIB.

Tags: Federal ReserveRegulatory capitalStress tests
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