Newsletter September 2011: Big US banks on target to meet systemic surcharge

NEW YORK – Most large US banks that are deemed to be systemically important financial institutions (SIFIs), will be able to meet the proposed regulatory capital surcharge from normal earnings retention. Given the 2019 implementation date, even those banks with the largest capital shortfalls will be able to cover this surcharge – or buffer – well ahead of time, assuming uninterrupted, normalised earnings according to a research note issued by ratings agency Fitch in late August.