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The top US banking regulator announced sweeping changes to capital rules governing mid-sized lenders as part of a comprehensive package of new regulatory standards to shore up a financial system reeling from bank failures earlier this year. is of.
Michael Barr, vice chairman for supervision at the Federal Reserve, unveiled regulatory changes on Monday for institutions with $100 billion or more in assets, proposing tighter capital standards that require banks to have additional funds to better prepare for emergent risks. Capital deposits will be required and that can be used to absorb any losses.
The proposals come months after the failures of Silicon Valley Bank, Signature Bank and First Republic, which raised fears about the resilience of regional lenders.
“Clearly, the failures of SVB and other banks this spring were a reminder that banks need to be more resilient, and that the foundation of that resilience, which is capital, has to be more needed.” Bipartisan Policy Center in Washington DC.
