NEW YORK--(BUSINESS WIRE)--The US Federal Reserve's completion of rules for US globally systemically important banks' (GSIBs) additional capital holdings (or buffers) clarifies key inputs to how these buffers will be determined and which banks qualify as a GSIB, says Fitch Ratings in a new report.
The rules leave open the potential that the buffers are included in the minimum hurdles required to be met in annual stress testing under the Fed's Comprehensive Capital Analysis and Review process.
The Federal Reserve's two-method approach to determining buffers includes a measure of a GSIB's short-term wholesale funding reliance, which essentially is expected to keep GSIB buffers elevated relative to some non-US regimes for the foreseeable future.
The report, "Final Rules on U.S. GSIB Buffers Provide Clarity, but Raise Questions", may be found at the link above or on www.fitchratings.com.
Additional information is available on www.fitchratings.com.
The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.
Final Rules on US GSIB Buffers Provide Clarity, But Raise Questions
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=869116
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