Modifications to the Capital Plan Rule and Stress Capital Buffer Requirement
Why this matters
This is a final rule from the Federal Reserve System that materially modifies how stress capital buffer requirements are calculated for systemically important financial institutions. The rule introduces symmetric two-year results averaging to reduce volatility, extends the annual effective date by one quarter, and amends reporting requirements. It affects a broad set of large banks and creates new binding obligations with specific implementation timelines. The document is comprehensive with economic analysis, cost-benefit assessment, and addresses multiple statutory authorities under the Dodd-Frank Act and Bank Holding Company Act.
AI-generated classification rationale, not a full analysis. Verify with the original Federal Reserve source before acting. Full disclaimer.
What the Federal Reserve said
Final rule. The Board is adopting a final rule to amend the calculation of the Board's stress capital buffer requirement applicable to certain large bank holding companies, savings and loan holding companies, U.S. intermediate holding companies of foreign banking organizations, and nonbank financial companies…
Extract from Federal Reserve . Read the full notice at the source for the authoritative text.
Context
Board of Governors of the Federal Reserve System (Federal Reserve) — The US central bank and supervisor of bank holding companies and state member banks. We track 92 updates from them.
US financial regulation is overseen by multiple agencies including the SEC, CFTC, Federal Reserve, OCC and FDIC. Browse all United States updates.
This update is classified under Prudential / Capital Requirements and Banking & Credit.