DBRS Publishes “DBRS: Fed’s Rules Reduce Regulatory Burden for Some Large Banks”

DBRS, Inc. (DBRS) published a commentary titled “DBRS: Fed’s Rules Reduce Regulatory Burden for Some Large Banks”.

Overall, DBRS views the Fed’s proposals as pragmatic and expects that those institutions most impacted would continue to manage capital and liquidity appropriately, consistent with how they have been managed post-crisis to date. As such, DBRS does not expect any rating changes as a result of the proposal, but will continue to actively monitor and communicate accordingly.

Summary highlights of the commentary include:

• DBRS considers the Fed’s proposed tailoring of capital and liquidity rules to be modest and expects the impacted institutions to benefit, but still maintain their credit strength.
• The Fed estimates that the cumulative impact from the proposals would result in slightly lower capital requirements and modestly lower liquidity buffers for Category III and IV banks.
• DBRS does not expect any rating changes as a result of the proposal, but will continue to actively monitor and communicate accordingly.

This commentary is available at www.dbrs.com.