Fed's Bowman assesses recalibrated eSLR and Treasury market impact
9 October 2026 · BIS
Federal Reserve Vice Chair for Supervision Michelle Bowman, in a BIS-published speech delivered 1 October 2026, gave an initial assessment of the Fed's recalibration of the enhanced supplementary leverage ratio (eSLR). She noted the eSLR applies only to U.S. GSIBs with a 3% minimum plus 2% buffer (and 6% for GSIB subsidiary insured depository institutions to be 'well capitalized'), and argued its binding nature had curtailed dealer intermediation in the Treasury market, prompting a temporary reduction in 2020 and the recent recalibration.
Federal Reserve Vice Chair for Supervision Michelle Bowman, in a BIS-published speech delivered 1 October 2026, gave an initial assessment of the Fed's recalibration of the enhanced supplementary leverage ratio (eSLR). She noted the eSLR applies only to U.S. GSIBs with a 3% minimum plus 2% buffer (and 6% for GSIB subsidiary insured depository institutions to be 'well capitalized'), and argued its binding nature had curtailed dealer intermediation in the Treasury market, prompting a temporary reduction in 2020 and the recent recalibration.