On 1 May 2014, the OCC, the Federal Reserve Board and the FDIC announced the adoption of a final rule to strengthen the supplementary leverage ratio standards for the largest, most systemically significant US banking organizations. The final rule applies to any bank holding company ("BHC") with more than $700 billion in consolidated total assets or $10 trillion in assets under custody ("covered BHC") and any insured depository institution ("IDI") subsidiary of these covered BHCs ("covered IDI"). Concurrent with this final rule, the agencies have issued a proposal to revise the calculation of total leverage exposure (the denominator of the supplementary leverage ratio) in a manner generally consistent with revisions to the international leverage ratio framework published by the Basel Committee on Banking Supervision in January 2014. Banking organizations subject to the enhanced supplementary leverage ratio requirements are required to calculate and publicly report their supplementary leverage ratios beginning in the first quarter of 2015. The supplementary leverage ratio requirements are not effective until 2018.
The full text of the final rule is available at: http://www.gpo.gov/fdsys/pkg/FR 2014-05-01/pdf/2014-09367.pdf.
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