Skip to main content

Change in the Capital: Supplementary Leverage Ratio

The Federal Reserve Board (FRB) has published a temporary change to its capital rule that impacts holding companies. This is in response to recent disruptions in economic conditions cause by the Coronavirus Disease 2019 (COVID-19) and current strains in U.S. financial markets.

Under the interim final rule, the “supplementary leverage ratio” calculation is modified to exclude (1) U.S. Treasury Securities, and (2) Deposits at Federal Reserve Banks. This change is intended to support financial market liquidity and increase the lending capacities of these banking organizations.

This change became effective on 04/14/2020 and remain in effect through 03/31/2021. Comments are due by 05/29/2020.

Emerging Issues

Fair Debt Collection For Servicemembers Act / H.R. 5003


  1. Would prohibit a debt collector from representing to servicemembers that failure to cooperate with a debt collector will result in a reduction of rank, a revocation of security clearance, or military
  2. Would require the Government Accountability Office to report on the impact of this prohibition on the timely delivery of information to service members, military readiness, and national security.

11/08/2019 — Introduction on the House by Madeleine Dean
11/14/2019 — Passed the House Financial Services Committee
03/02/2020 — Passed the House

Save our Homes Act / H.R. 6632


  1. Would create a simple, national plan for homeowners to save their home from foreclosure in the midst of the Coronavirus Pandemic.
  2. Would allow struggling homeowners, upon request, to receive a six-month forbearance plan and extension. After the forbearance period, they can begin making monthly payments.
  3. Would keep homeowners form being required to pay large balloon payments.

04/20/2020 — Introduced in the House by Darren Soto

Stop Overdraft Profiteering During COVID-19 Emergency Act / H.R. 6576


  1. Would suspend, during a major disaster or emergency declaration and for 120 days after the end of the
    incident period, certain penalties applicable to consumer transaction accounts.
  2. During such period, would prohibit depository institutions from charging checking-account penalties (i.e., non-sufficient fund fees and overdraft coverage fees), or reporting a consumer’s overdraft use to a credit reporting agency.

04/21/2020 — Introduced in the House by David N. Cecilline