Banking Agencies Propose Changes to Capital Buffers, Stress Testing, Leverage Ratios and Accounting Standards
The federal banking agencies recently issued several notices of proposed rulemakings that, together, would significantly revise the capital rules applicable to banking organizations, especially global systemically important banking organizations (“GSIBs”) and other banking organizations subject to the Federal Reserve’s Comprehensive Capital Analysis and Review (“CCAR”) process. The proposed rules consist of three separate releases: one relating to capital buffers and the CCAR process issued by the Federal Reserve, another relating to the “enhanced supplementary leverage” issued jointly by the Federal Reserve and the OCC, and a third relating to bank accounting standards for credit losses issued jointly by the Federal Reserve, OCC and FDIC.