US Regulators Relax Key Bank Capital Rules
In a significant move, U.S. banking regulators have finalized new rules to modify certain capital standards, particularly easing leverage requirements for large banks. The Federal Deposit Insurance Corporation (FDIC) has approved changes aimed at supporting low-risk activities and has notably relaxed a key capital rule tied to U.S. Treasury bonds. While these adjustments are seen as a benefit to larger banks, concerns have been raised by community banks and various advocacy groups about the potential prioritization of large financial institutions over smaller ones. Notably, Senator Warren has expressed her disapproval, criticizing the weakening of capital requirements. Meanwhile, some organizations are voicing support for community banks, advocating for increased services and modified leverage ratios to ensure a more balanced approach in the banking sector.
Federal Reserve Board (.gov), Reuters, Bloomberg.com, America First Policy Institute, Mirage News, Senate Committee on Banking, Housing, and Urban Affairs (.gov), VitalLaw.com, Bitget, PYMNTS.com, Bank Policy Institute