Building on the capital “neutralization” previously enacted via an inter-agency IFR, the Federal Reserve has also waived the supplemental leverage ratio (SLR) for large BHCs during the national emergency. GSIBs come under the enhanced SLR (eSLR) but are similarly provided temporary relief. GSIBs are subject to the eSLR’s higher ratios (e.g., five percent at the BHC level), but the ratio from which this is calculated reflects the new, less-stringent denominator applicable under the SLR.
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