US Fed Sets Individual Capital Requirements for Large Banks, DB USA Tops List

The Federal Reserve Board announced final individual capital requirements for large banks, with Deutsche Bank USA leading the list. The new requirements will be effective on October 1, following the Fed's latest stress test.

The Federal Reserve Board has announced the final individual capital requirements for large banks, effective October 1, following its latest stress test. The new requirements aim to enhance the resilience of the banking sector, with Deutsche Bank USA (DB) USA leading the list.

The minimum capital requirement for all banks is set at 4.5%, with Deutsche Bank USA having the highest stress capital buffer requirement of 16.0% [2]. Other notable common equity tier 1 (CET1) capital requirements include Citigroup (C) at 11.6%, JPMorgan Chase (JPM) at 11.5%, Goldman Sachs (GS) at 10.9%, Bank of America (BAC) at 10.0%, UBS (UBS) at 9.7%, and HSBC (HSBC) North American Holdings at 9.6% [2].

The Federal Reserve proposed in April to average stress test results over two consecutive years to reduce year-over-year volatility in capital requirements. If this rule is finalized, the 2024 and 2025 stress test results will be averaged, and updated capital requirements will be published separately [1].

Morgan Stanley has requested a reduction in its capital requirements and is currently under review by the Federal Reserve. The Board expects to make a decision and publish Morgan Stanley's final individual capital requirement by September 30, 2025 [3].

The Federal Reserve's announcement concludes its annual stress-test exercise, which assesses how large banks would perform under hypothetical economic conditions. The stress capital buffer requirement is designed to ensure banks can withstand potential losses and maintain stability in the financial system.

References:
[1] https://www.federalreserve.gov/newsevents/pressreleases/bcreg20250829a.htm
[2] https://seekingalpha.com/news/4490581-fed-declares-individual-capital-requirements-for-large-banks-db-usa-tops-list
[3] https://www.bloomberg.com/news/articles/2025-08-29/morgan-stanley-asks-federal-reserve-to-cut-capital-requirement