Banks fear G-Sib tweak will increase capital volatility

Fed proposal would raise capital surcharge in 10bp increments

Financial volatility

A US Federal Reserve proposal intended to reduce cliff effects in capital requirements is drawing criticism from senior bankers, who say it will instead subject them to “death by one thousand cuts”.

The proposed change, part of the Fed’s Basel III endgame package of regulations, would see the capital surcharge for US global systemically important banks (G-Sibs) increase in increments of 10 basis points, rather than the current 50bp.

While this is aimed at reducing steep drops when G-Sibs move

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here