U.S. Regulators Propose to Relax Major Banks' Capital Requirements, Could Release Billions of Dollars

Deep Tide TechFlow News, March 19 — According to Jin10 Data, the Federal Reserve’s proposed rule announced on Thursday will relax capital requirements for large Wall Street financial institutions. This move could free up billions of dollars for lending, stock buybacks, and dividends. Federal Reserve Vice Chair for Supervision Michelle Bowman stated in a release, “These changes will strengthen our overall capital framework, which will remain robust under the new regulatory structure.” The proposal is subject to a 90-day public consultation period before finalization. It has been developed jointly by Fed officials, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). The Federal Reserve Board is scheduled to vote on the plan this Thursday. Officials describe the proposal as part of a broader effort to unify capital standards. If finalized, along with relaxed rules on enhanced leverage ratios and reforms to stress testing, it would represent the largest overhaul of bank capital regulations since the 2008 global financial crisis. The Fed stated in a memo that, collectively, these proposals are expected to moderately reduce capital requirements for large banks.