Notice2025-22964

Regulation Q; Regulatory Capital Rule: Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
December 16, 2025

Issuing agencies

Federal Reserve System

Abstract

The Board is providing notice of the 2025 aggregate global indicator amounts, as required under the Board's rule regarding risk- based capital surcharges for global systemically important bank holding companies.

Full Text

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<title>Federal Register, Volume 90 Issue 239 (Tuesday, December 16, 2025)</title>
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[Federal Register Volume 90, Number 239 (Tuesday, December 16, 2025)]
[Notices]
[Pages 58245-58246]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22964]


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FEDERAL RESERVE SYSTEM

[Docket No. OP-1875]


Regulation Q; Regulatory Capital Rule: Risk-Based Capital 
Surcharges for Global Systemically Important Bank Holding Companies

AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Notice.

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SUMMARY: The Board is providing notice of the 2025 aggregate global 
indicator amounts, as required under the Board's rule regarding risk-
based capital surcharges for global systemically important bank holding 
companies.

DATES: December 16, 2025.

FOR FURTHER INFORMATION CONTACT: Juan Climent, Deputy Associate 
Director, (202) 872-7526, Brian Chernoff, Manager, (202) 731-8914, 
Alexander Jiron, Senior Financial Institution Policy Analyst II, (202) 
450-7350, or Aakash Jani, Senior Financial Institution Policy Analyst 
I, (202) 941-8305, Division of Supervision and Regulation; or Jay 
Schwarz, Deputy Associate General Counsel, (202) 452-2970, Mark Buresh, 
Senior Special Counsel, (202) 499-0261, or Jonah Kind, Senior Counsel, 
(202) 309-5287, Legal Division. Board of Governors of the Federal 
Reserve System, 20th and C, NW, Washington, DC 20551. For the hearing 
impaired and users of Telecommunications Device for the Deaf (TDD) and 
TTY-TRS, please call 711 from any telephone, anywhere in the United 
States.

SUPPLEMENTARY INFORMATION: The Board's framework for determining risk-
based capital surcharges for global systemically important bank holding 
companies (GSIB surcharge rule) establishes a methodology to identify 
global systemically important bank holding companies (GSIBs) in the 
United States based on indicators that are correlated with systemic

[[Page 58246]]

importance.\1\ Under the GSIB surcharge rule, a firm must calculate its 
GSIB score using a specific formula (method 1). Method 1 uses five 
equally weighted categories that are correlated with systemic 
importance--size, interconnectedness, cross-jurisdictional activity, 
substitutability, and complexity--and subdivided into twelve systemic 
indicators.
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    \1\ See 12 CFR 217.402, 217.404.
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    A firm divides its own measure of each systemic indicator by an 
aggregate global indicator amount. A firm's method 1 score is the sum 
of its weighted systemic indicator scores expressed in basis points. A 
firm that calculates a method 1 score of 130 basis points or more is 
identified as a GSIB under the GSIB surcharge rule. The GSIB surcharge 
for a firm is the higher of the GSIB surcharge determined under method 
1 and a second method, method 2, which is calculated based on measures 
of size, interconnectedness, cross-jurisdictional activity, complexity, 
and the firm's reliance on short-term wholesale funding.\2\
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    \2\ Method 2 uses similar inputs to those used in method 1 but 
replaces the substitutability category with a measure of a firm's 
use of short-term wholesale funding. See 12 CFR 217.405.
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    The aggregate global indicator amounts used in the score 
calculation under method 1 are based on data collected by the Basel 
Committee on Banking Supervision (BCBS). The BCBS amounts are 
determined based on the sum of the systemic indicator amounts reported 
by the 75 largest U.S. and foreign banking organizations as measured by 
the BCBS, and any other banking organization that the BCBS includes in 
its sample total for that year. The BCBS publicly releases these 
amounts, denominated in euros, each year.\3\ Pursuant to the GSIB 
surcharge rule, the Board publishes the aggregate global indicator 
amounts each year denominated in U.S. dollars using the euro-dollar 
exchange rate provided by the BCBS.\4\ Specifically, to determine the 
2025 aggregate global indicator amounts, the Board used the year-end 
2024 euro-denominated indicator amounts published by the BCBS and 
multiplied each of the euro-denominated indicator amounts by 1.0389, 
the euro to U.S. dollar spot exchange rate on December 31, 2024.\5\
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    \3\ The data used by the Board are available on the BCBS website 
at <a href="https://www.bis.org/bcbs/gsib/denominators.htm">https://www.bis.org/bcbs/gsib/denominators.htm</a>.
    \4\ 12 CFR 217.404(b)(1)(i)(B); see also 80 FR 49082, 49086-87 
(August 14, 2015). In addition, the Board maintains the GSIB 
Framework Denominators on its website, available at <a href="https://www.federalreserve.gov/supervisionreg/basel/denominators.htm">https://www.federalreserve.gov/supervisionreg/basel/denominators.htm</a>.
    \5\ Foreign exchange rates provided by the BCBS. Available at 
<a href="https://www.bis.org/bcbs/gsib/reporting_instructions.htm">https://www.bis.org/bcbs/gsib/reporting_instructions.htm</a>.
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    The aggregate global indicator amounts expressed in U.S. dollars 
for purposes of the 2025 method 1 score calculation under Sec.  
217.404(b)(1)(i)(B) of the GSIB surcharge rule are:

                        Aggregate Global Indicator Amounts in U.S. dollars (USD) for 2025
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                                                                                            Aggregate global
                   Category                               Systemic indicator              indicator amount (in
                                                                                                  USD)
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Size..........................................  Total exposures.......................       115,610,567,459,028
Interconnectedness............................  Intra-financial system assets.........        11,744,530,471,538
                                                Intra-financial system liabilities....        11,549,951,568,929
                                                Securities outstanding................        20,989,667,733,564
Substitutability..............................  Payments activity.....................     3,583,068,096,731,293
                                                Assets under custody..................       236,728,086,197,216
                                                Underwritten transactions in debt and          9,458,987,280,583
                                                 equity markets.
Complexity....................................  Notional amount of over-the-counter          743,719,670,668,380
                                                 (OTC) derivatives.
                                                Trading and available-for-sale (AFS)           4,617,580,286,026
                                                 securities.
                                                Level 3 assets........................           785,843,290,915
Cross-jurisdictional activity.................  Cross-jurisdictional claims...........        27,556,319,815,579
                                                Cross-jurisdictional liabilities......        22,625,378,519,775
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    Authority: 12 U.S.C. 248(a), 321-338a, 481-486, 1462a, 1467a, 1818, 
1828, 1831n, 1831o, 1831p-l, 1831w, 1835, 1844(b), 1851, 3904, 3906-
3909, 4808, 5365, 5368, 5371, 5371 note, and sec. 4012, Pub. L. 116-
136, 134 Stat. 281.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Acting Director of Supervision and 
Regulation under delegated authority.
Benjamin W. McDonough,
Deputy Secretary of the Board.
[FR Doc. 2025-22964 Filed 12-15-25; 8:45 am]
BILLING CODE 6210-01-P


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Indexed from Federal Register on December 16, 2025.

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