US Regulators Prepare to Ease Bank Capital Requirements
US regulators will soon unveil a new Basel draft that could lower capital requirements for major banks. The move marks a shift toward industry-friendly rules.
Bank regulators in the United States are preparing to unveil long-awaited draft rules that could significantly reduce the amount of capital lenders are required to hold. This move represents a major potential victory for the banking industry under the current administration. The Federal Reserve and fellow regulatory agencies are expected to release a more industry-friendly version of the Basel rule overhaul later this month, which aims to change how lenders assess risk.
The upcoming proposal is also expected to include measures to ease the additional capital surcharge currently applied to the world's most systemic banks. Michelle Bowman, the Federal Reserve Vice Chair for Supervision, is spearheading the effort and is scheduled to discuss the Basel framework in a speech this Thursday. Other key officials, including Jonathan Gould from the Office of the Comptroller of the Currency and Travis Hill of the Federal Deposit Insurance Corporation, are also slated to address regulatory matters this week.
