Fed Staff Estimates Proposed Global Systemically Important Banks Surcharge Changes Would Result In A $13B Aggregate Increase In Capital Requirements
Portfolio Pulse from Happy Mohamed
The Federal Reserve staff estimates that proposed changes to the Global Systemically Important Banks surcharge would result in a $13 billion aggregate increase in capital requirements.
July 27, 2023 | 4:45 pm
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NEGATIVE IMPACT
The proposed changes could increase capital requirements for banks, potentially affecting the performance of the SPDR S&P Bank ETF (KBE).
The proposed changes would increase capital requirements for banks, which could negatively impact their profitability. As KBE is an ETF that tracks the performance of publicly traded banking companies, it could be negatively affected by these changes.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The proposed changes could increase capital requirements for regional banks, potentially affecting the performance of the SPDR S&P Regional Banking ETF (KRE).
The proposed changes would increase capital requirements for banks, which could negatively impact their profitability. As KRE is an ETF that tracks the performance of publicly traded regional banking companies, it could be negatively affected by these changes.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The proposed changes could indirectly affect the performance of the SPDR S&P 500 ETF (SPY) due to its exposure to the banking sector.
The proposed changes would increase capital requirements for banks, which could negatively impact their profitability. As SPY is an ETF that tracks the performance of the S&P 500, which includes banking companies, it could be indirectly affected by these changes.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
The proposed changes could increase capital requirements for financial services companies, potentially affecting the performance of the Financial Select Sector SPDR Fund (XLF).
The proposed changes would increase capital requirements for banks, which could negatively impact their profitability. As XLF is an ETF that tracks the performance of publicly traded financial services companies, it could be negatively affected by these changes.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80