Joint Release
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release November 19, 2019
Agencies Finalize Changes to Supplementary Leverage Ratio as Required by
Economic Growth, Regulatory Relief, and Consumer Protection Act
The federal bank regulatory agencies have finalized changes to a capital requirement
for banking organizations predominantly engaged in custodial activities, as required by
the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).
The final rule is unchanged from the proposal issued for public comment in April 2019.
The EGRRCPA requires the agencies to permit certain banking organizations—those
predominantly engaged in custody, safekeeping, and asset servicing activities—to
exclude qualifying deposits at certain central banks from their supplementary leverage
ratio. The supplementary leverage ratio is one of many tools used by the federal bank
regulatory agencies to determine minimum required capital levels and ensure financial
stability in the event of stress in the banking system. It applies only to large or complex
internationally active banking organizations.
Based on current data, only The Bank of New York Mellon Corporation, Northern Trust
Corporation, and State Street Corporation, together with their depository institution
subsidiaries, would qualify for the rule.
The final rule will be effective April 1, 2020.
Attachment:
Regulatory Capital Rule: Revisions to the Supplementary Leverage Ratio to Exclude
Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in
Custody, Safekeeping and Asset Servicing Activities
Fact Sheet: Revisions to the Supplementary Leverage Ratio to Exclude Certain Central
Bank Deposits of Custodial Banking Organization
# # #
Media Contacts:
FDIC Julianne Breitbeil (202) 898-6895
Federal Reserve Eric Kollig (202) 452-2955
OCC Stephanie Collins (202) 649-6870
FDIC: PR-109-2019
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For immediate release November 19, 2019
Agencies Finalize Changes to Supplementary Leverage Ratio as Required by
Economic Growth, Regulatory Relief, and Consumer Protection Act
The federal bank regulatory agencies have finalized changes to a capital requirement
for banking organizations predominantly engaged in custodial activities, as required by
the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).
The final rule is unchanged from the proposal issued for public comment in April 2019.
The EGRRCPA requires the agencies to permit certain banking organizations—those
predominantly engaged in custody, safekeeping, and asset servicing activities—to
exclude qualifying deposits at certain central banks from their supplementary leverage
ratio. The supplementary leverage ratio is one of many tools used by the federal bank
regulatory agencies to determine minimum required capital levels and ensure financial
stability in the event of stress in the banking system. It applies only to large or complex
internationally active banking organizations.
Based on current data, only The Bank of New York Mellon Corporation, Northern Trust
Corporation, and State Street Corporation, together with their depository institution
subsidiaries, would qualify for the rule.
The final rule will be effective April 1, 2020.
Attachment:
Regulatory Capital Rule: Revisions to the Supplementary Leverage Ratio to Exclude
Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in
Custody, Safekeeping and Asset Servicing Activities
Fact Sheet: Revisions to the Supplementary Leverage Ratio to Exclude Certain Central
Bank Deposits of Custodial Banking Organization
# # #
Media Contacts:
FDIC Julianne Breitbeil (202) 898-6895
Federal Reserve Eric Kollig (202) 452-2955
OCC Stephanie Collins (202) 649-6870
FDIC: PR-109-2019