Back

Federal Reserve Vice Chair Michelle Bowman Says Bank Capital Revisions May Lower Requirements

Michelle Bowman says updates to Basel standards and the GSIB surcharge (extra capital buffer for systemically important banks) are intended to remove overlap and better match capital rules with actual risk.

Summary

No Summary provided as the original text is short

Terms & Concepts
  • Basel standards: Global banking capital and risk rules designed to strengthen financial system stability.
  • GSIB surcharge: An extra capital requirement for globally systemically important banks to reflect their broader risk to the financial system.
  • Bank capital requirements: Rules that require banks to hold loss-absorbing capital to support solvency and manage risk.