FDIC, OCC, and Federal Reserve Propose Rule to Modify Regulatory Capital Standards for GSIBs and Their Subsidiaries

On June 27, the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and Board of Governors of the Federal Reserve System (Federal Reserve), (collectively, the agencies) proposed a rule to amend the enhanced supplementary leverage ratio (eSLR) standards for global systemically important bank holding companies (GSIBs) and their depository institution subsidiaries. Specifically, the proposal would modify the current eSLR buffer requirement to equal 50% of a GSIB’s method 1 risk-based capital surcharge under the Federal Reserve’s GSIB framework. This change is designed to ensure the leverage ratio acts as a backstop to risk-based capital requirements, reducing disincentives for participation in low-risk business lines. The proposed rule also aligns eSLR standards at the subsidiary level with those of the parent holding company and revises the OCC’s methodology for determining which institutions are subject to eSLR, consistent with regulatory tailoring principles. In addition, the rule includes conforming changes to related capital regulations, including total loss-absorbing capacity and long-term debt standards. Public comments must be received on or before August 26.

On June 27, the OCC, FDIC, National Credit Union Administration (NCUA), and Financial Crimes Enforcement Network (FinCEN) issued an order revising their guidance on how financial institutions collect Taxpayer Identification Numbers (TINs). Previously, the Customer Identification Program (CIP) Rule under the USA PATRIOT Act required financial institutions to collect TINs directly from customers for account openings. Based in part on a rise in consumer reluctance to provide full TINs, under the new order, those financial institutions are now permitted to use alternative third-party method to collect TINs. The order applies to accounts at all banks supervised by the OCC, FDIC or NCUA.

On June 25, the US Securities and Exchange Commission (SEC) voted to extend the compliance date for the amendments to the broker-dealer customer protection rule (Rule 15c3-3) that the SEC adopted on December 20, 2024. The compliance date was extended six months from December 31, 2025 to June 30, 2026. The proposed amendments require certain broker-dealers to increase the frequency of required reserve computations under Rule 15c3-3 from weekly to daily. The SEC’s extension provides broker-dealers with more time to make any necessary systems or operational changes to implement a daily computation requirement and test their new daily processes for compliance.