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

Key Points

• 1The largest U.S. banks must maintain higher capital reserves under updated 'enhanced supplementary leverage ratio' standards, similar to having a bigger emergency fund
• 2These mega-banks must issue more long-term debt that can be converted to capital if the bank faces serious financial trouble, creating an extra safety net
• 3The rules specifically apply to U.S. Global Systemically Important Banks—the biggest financial institutions whose failure could harm the entire economy
• 4Banks have a set timeline to comply with the new requirements, with implementation happening over a transition period
• 5The changes aim to reduce the risk of another financial crisis by ensuring large banks can absorb losses without needing government bailouts

Key Dates