SIFMA Statement on SLR Reform Proposal

Washington, D.C., June 25, 2025 – SIFMA released the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, on the proposal released today reforming supplemental leverage ratio (SLR) rules:

“We commend the Agencies for recognizing the need to address the constraints created by leverage ratio requirements on large banks, impacting their ability to intermediate the U.S. Treasury market and in turn negatively impacts Treasury market liquidity.

“Bank-affiliated brokers-dealers are key intermediaries in the U.S. Treasury market. Current capital rules require banks to meet two leverage ratios – supplementary leverage ratio and U.S. Tier 1 leverage ratio.  Leverage ratios, being non-risk-sensitive, disincentivize large banking organizations from holding and intermediating safe assets, such as central bank reserves and U.S. Treasury securities.  With U.S. Treasury issuance set to grow rapidly, and with volatility in the market top of mind, lowering the supplementary leverage ratio buffer requirement does not address the disincentives that large banking organizations face.  Thus, we encourage the Agencies to exempt Treasuries and central bank deposits from leverage ratio calculations going forward.  This will ensure banks can effectively intermediate the Treasury market and have greater resources to support U.S. economic growth.”

In April, SIFMA submitted letters to relevant regulators further expanding on these views, which can he found here.

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.