At the G-20 summit, heads of state including President Obama endorsed a new capital surcharge for global systemically-important banks (G-SIBs) and named the 29 G-SIBs likely to be subject to this new regime. The rule is part of a global initiative to address the risk of systemically-important financial institutions (SIFIs), but only banks will be subjected to this capital charge and, then, to resolution requirements separately approved by the G-20. However, the final standards make clear that even if a G-SIB is subject to home-country resolution standards that bar taxpayer support and/or if the global resolution standards prove robust, the capital surcharge will still apply. The final rule establishes the initial methodology for identifying G-SIBs, assigning the surcharge based on varying “buckets” and providing for supervisory override of the quantitative process. Extensive new data requirements apply to all banks subject to potential G-SIB designation.
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