Fed Proposes Lowering Capital Rules for Major Banks
Fed Vice Chair Michelle Bowman proposed easing capital rules for large banks to reflect actual risks. The plan reverses earlier calls for significant hikes.
In a significant shift for the financial sector in the United States, Federal Reserve Vice Chair for Supervision Michelle Bowman announced on Thursday that capital requirements for major banks will be reduced under newly revised regulatory drafts. This move represents a major victory for Wall Street lenders who had previously faced the prospect of double-digit increases under a proposal introduced in 2023. The adjustments target the Basel rules and the Global Systemically Important Bank (GSIB) surcharge, which dictate the amount of capital banks must maintain to protect against potential losses.
