(a) Purpose. This subpart implements provisions of section 165 of the Dodd-Frank
Act (12 U.S.C. 5365), by establishing a risk-based capital surcharge
for global systemically important bank holding companies.
(b) Applicability.
(1) General. This subpart applies to a bank holding company that:
(i) Is an advanced approaches Board-regulated
institution or a Category III Board-regulated institution;
(ii) Is not a consolidated subsidiary
of a bank holding company; and
(iii) Is not a consolidated subsidiary of a foreign banking organization.
(2) Effective date of calculation and surcharge
requirements.
(i) A bank holding company identified in section 217.400(b)(1) is
subject to section 217.402 of this part and must determine whether
it qualifies as a global systemically important BHC by December 31
of the year immediately following the year in which the bank holding
company becomes an advanced approaches Board-regulated institution
or a Category III Board-regulated institution; and
(ii) A bank holding company that becomes
a global systemically important BHC pursuant to section 217.402 must
calculate its GSIB surcharge pursuant to section 217.403 by December
31 of the year in which the bank holding company is identified as
a global systemically important BHC and must use that GSIB surcharge
for purposes of determining its maximum payout ratio under Table 1
to section 217.11 beginning on January 1 of the year that is immediately
following the full calendar year after it is identified as a global
systemically important BHC.
(3) Transition
provisions for the calculation and surcharge requirements.
(i) GSIB surcharge requirements for bank holding
companies with more than $700 billion in total assets or $10 trillion
in assets under custody. A bank holding company that is an advanced
approaches Board-regulated institution with more than $700 billion
in total assets as reported on the FR Y-9C as of December 31, 2014,
or more than $10 trillion in assets under custody as reported on the
FR Y-15 as of December 31, 2014, must calculate its GSIB surcharge
by December 31, 2015, and use that GSIB surcharge to determine its
maximum payout ratio under Table 1 to section 217.11 beginning on January
1, 2016; provided that for the GSIB surcharges required to be calculated
by December 31, 2015 and by December 31, 2016, the bank holding company
must calculate its short-term wholesale funding score using the average
of its weighted short-term wholesale funding amounts (defined in section
217.406(b)), calculated for July 31, 2015, August 24, 2015, and September
30, 2015.
(ii) Calculation and GSIB surcharge requirements
for other advanced approaches Board-regulated institutions. A
bank holding company that was an advanced approaches Board-regulated
institution as of December 31, 2014, and is not described in paragraph
(b)(3)(i) of this section must:
(A) Determine whether it qualifies as a global
systemically important BHC pursuant to section 217.402 by December
31, 2015; and
(B) To the extent it
qualifies as a global systemically important BHC by December 31, 2015,
calculate its GSIB surcharge by December 31, 2016. The GSIB surcharge
calculated by December 31, 2016, shall equal the method 1 surcharge
(defined in section 217.403) of the bank holding company.
(c) Reservation of authority.
(1) The Board may apply this subpart
to any Board-regulated institution, in whole or in part, by order
of the Board based on the institution’s capital structure, size, level
of complexity, risk profile, scope of operations, or financial condition.
(2) The Board may adjust the amount
of the GSIB surcharge applicable to a global systemically important
BHC, or extend or accelerate any compliance date of this subpart,
if the Board determines that the adjustment, extension, or acceleration
is appropriate in light of the capital structure, size, complexity,
risk profile, and scope of operations of the global systemically important
BHC. In increasing the size of the GSIB surcharge for a global systemically
important BHC, the Board shall follow the notice and response procedures
in 12 CFR part 263, subpart E [at
8-088.1 et seq.].
