Citi first to adopt Fed’s two-year SCB average in capital target
Bank’s 12.8% CET1 target reflects proposed averaging rule, pushing capital goal up $2.4bn
Citi has become the first major US bank to publicly base its capital target on a proposed Federal Reserve reform to the stress capital buffer (SCB).
The Fed’s proposal, published on April 17, would calculate the capital depletion component of the SCB as the average of a bank’s Dodd-Frank Act stress test results over the past two years, rather than using only the most recent results.
In Citi’s third
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