Banks call for revamped G-Sib surcharge

Fears surcharge will raise post-stress capital requirements under proposed new buffer

US banks are calling on the Federal Reserve to change the way it calculates its capital surcharge for global systemically important banks (G-Sibs), in order to avoid a spike in capital requirements under its proposed stress capital buffer.

Banks are concerned that adding the G-Sib surcharge in its current form to the stress capital buffer (SCB) will raise post-stress minimum capital requirements. The surcharge does not take into account the fact that banks are better capitalised than they were