Following its stress test earlier this year, the Federal
Reserve Board today announced the individual capital requirements for
all large banks, effective on October 1.
capital requirements are in part determined by the Board's stress test
results, which provide a risk-sensitive and forward-looking assessment
of capital needs. The "Large Banks Capital Requirements" table shows
each bank's total common equity tier 1 capital requirement, which is
made up of several components, including:
capital requirement, which is the same for each firm and is 4. 5
The stress capital buffer requirement, which is
determined from the stress test results, and is at least 2. 5 percent;
If applicable, a capital surcharge for global
systemically important banks (G-SIBs), which is updated in the first
quarter of each year to account for the overall systemic risk of each
If a bank's capital dips below its total
requirement announced today, the bank is subject to automatic
restrictions on both capital distributions and discretionary bonus
The Board also today affirmed the stress test
results for two firms that requested reconsideration. Those firms are
Bank of America Corporation and Huntington Bancshares Incorporated.
The reconsideration process involved an independent
groupâseparate from the stress testing groupâthat analyzed and
evaluated the results. The results were checked for errors and to
ensure that the stress test models, which project the loan losses and
revenues for banks under the hypothetical stress scenario, worked as
intended and were consistent with the principles described in the
Board's Stress Testing Policy Statement.
inquiries, please email [email protected] or call (202) 452-2955.
Last Update: August 04, 2022
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