TCH Study Estimates Annual Cost of Regulatory Compliance for U.S. G-SIBs

TCH Study Estimates Annual Cost of Regulatory Compliance for U.S. G-SIBs
The Clearing House Association released research that finds that the largest banks have incurred $27-$45 billion in annual costs related to post-crisis regulation. The study considers the annual cost of compliance with the: (i) G-SIB capital surcharge, (ii) enhanced supplemental leverage ratio, (iii) liquidity coverage ratio, (iv) net stable funding ratio, (v) proposed rules on long-term debt and wholesale funding, and (vi) Tester amendment. The study excludes offsets that are difficult to quantify, such as those related to CCAR, and thus likely underestimates the overall cost of compliance.

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The views expressed do not necessarily reflect those of the Bank Policy Institute’s member banks, and are not intended to be, and should not be construed as, legal advice of any kind.