The 2023 U.S. Capital Rules Proposals
Continuing our discussion of the proposed changes to the U.S. capital rules, this post features a PPT presentation summarizing the proposals.
This link will open the presentation in a new window, without a download. A download link is below.
The presentation covers, in varying degrees of detail:
Big Picture Observations
Capital Requirements Are Going Up
Some Firms May Need to Raise or Retain Capital
Not So Bespoke
Is Tailoring Over?
What Does It Mean for M&A?
Agencies Attentive to Competitive Equity Considerations, But…
An Unexpected Setback for Non-U.S. Banks With Significant U.S. Operations
Chair Powell Open to Changes
More Detailed Item-by-Item Discussion
Tailoring Categories
Minimum Risk-Based Capital Ratios
Definition of Capital and Minimum-Risk Based Capital Ratios
Accumulated Other Comprehensive Income
Deductions From Capital
RWAs for Credit Risk
RWAs for Market Risk
RWAs for Operational Risk
SA-CCR
CVA Risk RWAs
Equity Exposures
Collins Amendment; Output Floors
Transition Provisions
Capital Buffers
Capital Conservation Buffer
Stress Capital Buffer
Countercyclical Capital Buffer
GSIB Surcharge
Leverage Capital Requirements
Leverage Ratio
Supplementary Leverage Ratio
Enhanced Supplementary Leverage Ratio
TLAC and Long-Term Debt Requirement
Other Items
Changes to Cross-Jurisdictional Activity Calculation
Consideration of Stress Testing Changes
Pillar 2
Crypto
I am not still sure if this actually works, but thanks again for reading. Please direct any feedback to bankregblog@gmail.com