Fed sets high capital targets for European bank subsidiaries

By Tyler Davies
11 Aug 2020

European banks will be subject to some of the Federal Reserve’s highest capital targets, after the US regulator switched to using stress test results as the main input for its requirements.

The Fed published a complete list of its latest capital demands on Monday evening. 

All banks must meet a minimum common equity tier one (CET1) target of 4.5% of their risk-weighted assets (RWAs). 

There are then surcharges for the firms that are considered to be systemically ...

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