• Bank Capital Requirements: Basel Committee Updates Framework for Assessing a Common Equity Surcharge on Global Systemically Important Banks
  • July 30, 2013
  • Law Firm: Sullivan Cromwell LLP - New York Office
  • The Basel Committee on Banking Supervision (the “BCBS”) recently issued a revised framework (the “Revised G-SIB Framework”) for assessing a common equity surcharge on certain designated global systemically important banks (“G-SIBs”) that updates and replaces the framework for assessing the G-SIB capital surcharge issued by the BCBS in November 2011 (the “Prior G-SIB Framework”). The Revised G-SIB Framework largely maintains the Prior G-SIB Framework’s indicator-based approach for determining when a capital surcharge will be applied and does not change the calibration of the surcharge. However, the Revised G-SIB Framework makes several noteworthy changes to, and clarifies important aspects of, the Prior G-SIB Framework, including: