Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies

<RULE> DEPARTMENT OF THE TREASURY <SUBAGY>Office of the Comptroller of the Currency</SUBAGY> <CFR>12 CFR Parts 3 and 6</CFR> <DEPDOC>[Docket ID OCC—2025-0006]</DEPDOC> <RIN>RIN 1557-AF31</RIN> FEDERAL RESERVE SYSTEM <CFR>12 CFR Parts 208, 217, and 252</CFR> <DEPDOC>[Regulations H, Q, and YY; Docket No. R-1867]</DEPDOC> <RIN>RIN 7100-AG96</RIN> FEDERAL DEPOSIT INSURANCE CORPORATION <CFR>12 CFR Part 324</CFR> <RIN>RIN 3064-AG11</RIN> <SUBJECT>Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Office of the Comptroller of the Currency, Treasury; the Board of Governors of the Federal Reserve System; and the Federal Deposit Insurance Corporation. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and Federal Deposit Insurance Corporation (FDIC) are adopting a final rule to modify the enhanced supplementary leverage ratio standards applicable to U.S. bank holding companies identified as global systemically important bank holding companies (GSIBs), their subsidiary depository institutions that are Board- or FDIC-regulated, and national banks and Federal savings associations that are subsidiaries of a U.S. top-tier bank holding company with total consolidated assets of more than $700 billion or assets under custody of more than $10 trillion (together with Board- and FDIC-regulated subsidiary depository institutions of GSIBs, covered depository institutions). These modifications are intended to help ensure that the enhanced supplementary leverage ratio standards serve as a backstop to risk-based capital requirements rather than a frequently binding constraint, thus reducing potential disincentives for GSIBs and covered depository institutions to participate in low-risk, low-return activities. The Board is also finalizing conforming amendments to its total loss-absorbing capacity and long-term debt requirements. In addition, the Board is making conforming amendments to relevant regulatory reporting forms, and the Board and FDIC are making final certain technical corrections to the capital rule and the prompt corrective action framework. Banking organizations subject to the final rule may elect to early adopt the final rule as of January 1, 2026. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> The final rule is effective April 1, 2026. </EFFDATE> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> <E T="03">OCC:</E> Venus Fan, Risk Expert, Benjamin Pegg, Technical Expert, Capital Policy, (202) 649-6370; Carl Kaminski, Assistant Director, Ron Shimabukuro, Senior Counsel, Scott Burnett, Counsel, Chief Counsel's Office, (202) 649-5490, Office of the Comptroller of the Currency, 400 7th Street SW, Washington, DC 20219. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. <E T="03">Board:</E> Juan Climent, Deputy Associate Director, (202) 872-7526; Brian Chernoff, Manager, (202) 731-8914; Missaka Nuwan Warusawitharana, Manager, (202) 452-3461; Akos Horvath, Principal Economist, (202) 452-3048; Nadya Zeltser, Lead Financial Institution Policy Analyst, (202) 452-3164; Anthony Sarver, Senior Financial Institution Policy Analyst, (202) 475-6317, Division of Supervision and Regulation; or Jay Schwarz, Deputy Associate General Counsel, (202) 731-8852; Mark Buresh, Senior Special Counsel, (202) 499-0261; Ryan Rossner, Counsel, (202) 430-1368; Isabel Echarte, Senior Attorney, (202) 945-2412, Legal Division, Board of Governors of the Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. For the hearing impaired only, Telecommunication Device for the Deaf (TDD), (202) 263-4869. <E T="03">FDIC:</E> Benedetto Bosco, Chief, Capital Policy Section; Michael Maloney, Senior Policy Analyst; Kyle McCormick, Senior Policy Analyst; Keith Bergstresser, Senior Policy Analyst; Eric Schatten, Senior Policy Analyst; Soo Jeong Kim, Policy Analyst; Matthew Park, Financial Analyst; Capital Markets and Accounting Policy Branch, Division of Risk Management Supervision; Catherine Wood, Counsel; Merritt Pardini, Counsel; Kevin Zhao, Senior Attorney; Nicholas Soyer, Attorney, Legal Division; <E T="03">regulatorycapital@fdic.gov,</E> (202) 898-6888; Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Table of Contents</HD> <EXTRACT> <FP SOURCE="FP-2">I. Introduction</FP> <FP SOURCE="FP1-2">A. Overview of Leverage Capital Requirements for Large Banking Organizations</FP> <FP SOURCE="FP1-2">B. Objective of Rulemaking</FP> <FP SOURCE="FP1-2">C. Overview of the Proposed Rule and Summary of Comments</FP> <FP SOURCE="FP1-2">D. Overview of the Final Rule</FP> <FP SOURCE="FP-2">II. Final Rule</FP> <FP SOURCE="FP1-2">A. Changes to the Enhanced Supplementary Leverage Ratio Standards</FP> <FP SOURCE="FP1-2">1. Proposed Calibration and Comments Received</FP> <FP SOURCE="FP1-2">2. Calibration of the Holding Company Standard</FP> <FP SOURCE="FP1-2">3. Calibration of the Depository Institution Standard</FP> <FP SOURCE="FP1-2">4. Modification to the Form of the Depository Institution Standard</FP> <FP SOURCE="FP1-2">B. Amendments to Total Loss-Absorbing Capacity and Long-Term Debt Requirements</FP> <FP SOURCE="FP1-2">C. Applicability Thresholds of the eSLR Standard for OCC-Supervised Institutions</FP> <FP SOURCE="FP1-2">D. Comments on Other Potential Modifications to the Supplementary Leverage Ratio Requirement and Other Elements of the Agencies' Regulatory Framework</FP> <FP SOURCE="FP1-2">E. Technical Corrections</FP> <FP SOURCE="FP-2">III. Effective Date</FP> <FP SOURCE="FP-2">IV. Economic Analysis</FP> <FP SOURCE="FP1-2">A. Introduction</FP> <FP SOURCE="FP1-2">B. Baseline</FP> <FP SOURCE="FP1-2">1. Role of Banking Organizations as Investors in U.S. Treasury Securities</FP> <FP SOURCE="FP1-2">2. Treasury Securities Held by Banking Organizations Subject to Category I to III Standards</FP> <FP SOURCE="FP1-2">C. Policy Change</FP> <FP SOURCE="FP1-2">D. Reasonable Alternatives</FP> <FP SOURCE="FP1-2">E. Changes in the Supplementary Leverage Ratio and Tier 1 Capital Requirements</FP> <FP SOURCE="FP1-2">F. Benefits</FP> <FP SOURCE="FP1-2">G. Costs</FP> <FP SOURCE="FP1-2">H. Additional Comments on the Economic Analysis</FP> <FP SOURCE="FP1-2">1. Requests To Consider Potential Future Developments</FP> <FP SOURCE="FP1-2">2. Requests To Consider Potential Interaction Effects</FP> <FP SOURCE="FP1-2">3. Requests To Consider Further Benefits and Costs</FP> <FP SOURCE="FP1-2">I. Analysis of TLAC and Long-Term Debt Requirement Changes</FP> <FP SOURCE="FP1-2">1. Baseline</FP> <FP SOURCE="FP1-2">2. Changes in Requirements</FP> <FP SOURCE="FP1-2">3. Anticipated Economic Effects</FP> <FP SOURCE="FP1-2">J. Conclusion</FP> <FP SOURCE="FP1-2">K. Appendix</FP> <FP SOURCE="FP1-2"> 1. Estimating the Available Capacity of Holding Companies for Additional Reserves and U.S. Treasury Securities Held as Investment Securities at Depository Institution Subsidiaries </FP> <FP SOURCE="FP1-2">2. Estimating the Available Capacity of Holding Companies for Additional U.S. Treasury Securities Held at Broker-Dealer Subsidiaries, Assuming Perfect Hedging</FP> <FP SOURCE="FP-2">V. Administrative Law Matters</FP> <FP SOURCE="FP1-2">A. Paperwork Reduction Act</FP> <FP SOURCE="FP1-2">B. Regulatory Flexibility Act Analysis</FP> <FP SOURCE="FP1-2">C. Plain Language</FP> <FP SOURCE="FP1-2">D. Riegle Community Development and Regulatory Improvement Act of 1994</FP> <FP SOURCE="FP1-2">E. Executive Orders 12866, 13563, and 14192</FP> <FP SOURCE="FP1-2">F. OCC Unfunded Mandates Reform Act of 1995</FP> <FP SOURCE="FP1-2">G. Congressional Review Act</FP> </EXTRACT> <HD SOURCE="HD1">I. Introduction</HD> On July 10, 2025, the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) published in the <E T="04">Federal Register</E> a notice of proposed rulemaking (the proposal)  <SU>1</SU> <FTREF/> that would modify the enhanced supplementary leverage ratio (eSLR) standards that apply to U.S. bank holding companies identified as global systemically important bank holding companies (GSIBs)  <SU>2</SU> <FTREF/> and their subsidiary depository institutions (covered depository institutions). <SU>3</SU> <FTREF/> Following review of the comments received on the proposal, the agencies are finalizing the proposed changes, with certain adjustments discussed below. <FTNT> <SU>1</SU>   <E T="03">See</E> “Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies,” 90 FR 30780 (July 10, 2025). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See</E> 12 CFR part 217, subpart H (GSIB surcharge framework). A bank holding company subject to the GSIB surcharge framework must determine whether it is a GSIB by applying a multifactor methodology based on size, interconnectedness, substitutability, complexity, and cross-jurisdictional activity. <E T="03">See</E> 12 CFR 217.402. </FTNT> <FTNT> <SU>3</SU>  This <E T="02">SUPPLEMENTARY INFORMATION</E ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 307k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━