Federal Reserve announces technical change to total loss absorbing capacity buffer requirements
March 24, 2020
On March 23, the Federal Reserve Board announced a technical change to support the U.S. economy and permit banks to continue lending to creditworthy households and businesses. The interim rule will phase in gradually the automatic restrictions associated with a firm’s “total loss absorbing capacity” (TLAC) buffer requirements, if the levels decline, and is intended to facilitate the use of firms’ buffers to promote lending activity.