This translates into a regulatory regime where the GSIBs are subject to the most stringent standards, incorporating enhancements like a GSIB-specific risk-based capital surcharge and the enhanced supplementary leverage ratio. Even the smallest banks are subject to size and risk considerations in their supervisory expectations, like a longer examination cycle, and straight forward capital and liquidity requirements and expectations.
This very intentional approach accomplishes utility and efficiency, for both regulators and the regulated institutions, that would be otherwise impossible. Tailoring our regulatory approach enables us to strike an appropriate balance for each relevant bank tier, with requirements that address risks, including financial stability risks, while recognizing the costs of over-regulation.