BNY Mellon, Schwab would benefit most from SLR relief

A repeat of the pandemic carve-out would boost average ratio across US banks by 45bp

BNY Mellon and Charles Schwab would reap the most benefit should US regulators heed recent calls to recalibrate the supplementary leverage ratio (SLR) to exclude holdings of US Treasuries and reserves held at the central bank, analysis of Q2 data by Risk Quantum suggests.

A carve-out of US Treasuries – as implemented by the Federal Reserve during the first year of the pandemic to free up balance sheet capacity – would boost SLRs by an average of 45 basis points across the 14 US lenders