FRSFinal Rule
Regulatory Capital: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies
Finance & Banking
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Summary
The Federal Reserve is updating the financial safety rules for America's biggest banks, requiring them to hold more money in reserve and maintain better access to funds during emergencies. These changes aim to make sure that if a major bank fails, it won't cause a ripple effect that crashes the entire financial system.
Key Points
- 1The largest U.S. banks must now maintain higher capital reserves (money set aside) to absorb potential losses
- 2Banks must keep more long-term debt that can be converted to capital if they face serious financial problems
- 3These rules specifically target the 8 to 10 largest, most systemically important U.S. bank holding companies
- 4The changes make banks better able to survive financial crises without needing government bailouts
- 5The regulation takes effect over a transition period to give banks time to adjust their financial structures
Key Dates
Published
December 1, 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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