U.S. bank regulators have extended the comment period on a proposed rule that would impose capital surcharges on systemically-important banks.
The U.S. Federal Reserve Board said Thursday it will extend the comment period for its proposed rule, which was due to expire March 2, until April 3. The Fed says that extension will allow commenters more time to analyze the issues and prepare their comments.
As part of the reforms to bank capital rules in the aftermath of the financial crisis, regulators are planning to introduce capital surcharges for the largest, most systemically important banks. The reforms aim to help protect against the failure of these big banks, and the risk that they could cause systemic damage.
The Fed's proposed rule would establish a methodology to determine which firms should be considered global systemically important banks, and it would also set the size of the resulting risk-based capital surcharge.