Federal Reserve unveils proposal to ease regulations for larger lenders
The Bank Policy Institute says the proposal falls short and fails to address underlying issues with bank regulations
Washington — The Federal Reserve said on Wednesday it wants to ease regulations for US lenders with less than $700bn in assets, a way to lessen the burden on big commercial lenders that do not have volatile Wall Street businesses. Under the Fed proposal, midsized lenders including US Bancorp, Capital One Financial, PNC Financial and Charles Schwab would face lower liquidity and compliance requirements, and smaller banks would get even easier treatment. The proposal stems from a law Congress passed in May that ordered the Fed to reduce regulatory burdens on community and regional lenders. Under the proposal, which is subject to a comment period and may be revised, there would be four tiers of regulation for banks with more than $100bn in assets. Those with $250bn to $700bn in assets could enjoy a reduced liquidity coverage ratio (LCR), which requires banks to hold high-quality assets that could easily be turned into cash. Banks in that range could see their liquidity requirements red...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.