U.S. Bank Faces Higher Capital Requirements Post FSB Reassessment

A major U.S. bank has been classified as significantly more impactful to the global financial system by the Financial Stability Board (FSB), leading to elevated capital requirements. The bank’s placement on the FSB’s global systemically important banks (GSIB) list has shifted it to the third-highest tier, increasing its additional capital buffer requirement from 1.5% to 2%. Conversely, Deutsche Bank experienced a downgrade in its GSIB classification, reducing its required capital buffer to 1%. Notably, no other changes were made compared to last year.