FRSFinal Rule

Federal Reserve Bank Capital Stock

Finance & Banking

Summary

This Federal Reserve regulation establishes rules for how much capital stock banks must hold and how it's managed. Capital stock is essentially the money that banks keep on hand to protect against losses, which helps ensure banks stay stable and can continue lending to businesses and consumers even during tough economic times.

Key Points

  • 1Banks must maintain minimum levels of capital stock as a safety cushion to absorb losses and protect deposits
  • 2The rule clarifies how Federal Reserve banks calculate and report their capital requirements
  • 3Banks that don't meet capital requirements may face restrictions on dividends and stock buybacks
  • 4The regulation helps prevent bank failures by ensuring financial institutions stay financially healthy
  • 5These rules ultimately protect everyday consumers by making the banking system more stable and secure

Key Dates

Published

November 20, 2025

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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