12 CFR 217.400 – Purpose and applicability
(a) Purpose. This subpart implements provisions of section 165 of the Dodd-Frank Act (12 U.S.C. § 5365), by establishing a risk-based capital surcharge for global systemically important bank holding companies.
(b) Applicability—(1) General. This subpart applies to a bank holding company that:
(i) Is an advanced approaches Board-regulated institution or a Category III Board-regulated institution;
(ii) Is not a consolidated subsidiary of a bank holding company; and
(iii) Is not a consolidated subsidiary of a foreign banking organization.
(2) Effective date of calculation and surcharge requirements. (i) A bank holding company identified in § 217.400(b)(1) is subject to § 217.402 of this part and must determine whether it qualifies as a global systemically important BHC by December 31 of the year immediately following the year in which the bank holding company becomes an advanced approaches Board-regulated institution or a Category III Board-regulated institution; and
(ii) A bank holding company that becomes a global systemically important BHC pursuant to § 217.402 must calculate its GSIB surcharge pursuant to § 217.403 by December 31 of the year in which the bank holding company is identified as a global systemically important BHC and must use that GSIB surcharge for purposes of determining its maximum payout ratio under Table 1 to § 217.11 beginning on January 1 of the year that is immediately following the full calendar year after it is identified as a global systemically important BHC.
(c) Reservation of authority. (1) The Board may apply this subpart to any Board-regulated institution, in whole or in part, by order of the Board based on the institution’s capital structure, size, level of complexity, risk profile, scope of operations, or financial condition.
(2) The Board may adjust the amount of the GSIB surcharge applicable to a global systemically important BHC, or extend or accelerate any compliance date of this subpart, if the Board determines that the adjustment, extension, or acceleration is appropriate in light of the capital structure, size, complexity, risk profile, and scope of operations of the global systemically important BHC. In increasing the size of the GSIB surcharge for a global systemically important BHC, the Board shall follow the notice and response procedures in 12 CFR part 263, subpart E.