ICBA Opposes Plan to Ease Megabank Capital Rules

Jun 13, 2018
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ICBA expressed opposition to a regulatory proposal to ease capital requirements on the largest and riskiest financial institutions.

The proposal to roll back capital standards on global systemically important bank holding companies, or GSIBs, and their insured subsidiaries would make them more likely to fail and put the banking system at greater risk, ICBA said.

The Federal Reserve Board and Office of the Comptroller of the Currency proposal would reduce capital levels required by the ICBA-supported enhanced supplementary leverage ratio standards introduced in 2013.

The proposal would slash minimum tier 1 capital requirements by $9 billion for the GSIB holding companies and $121 billion for their depository subsidiaries, according to the agencies.

ICBA’s comment letter calls on the agencies to retain the current capital standards to protect against further disruptions to the banking system and economy from the nation’s largest financial firms.

Read ICBA Letter
Read ICBA Release