Fed plans to review bank capital requirements, including leverage rules, to address distorted requirements

From Yahoo Finance: 2025-06-23 10:26:00

The Federal Reserve plans to review and potentially reform bank capital requirements, starting with an overhaul of leverage rules. Fed Vice Chair Michelle Bowman stated that upcoming changes are a first step in addressing “distorted” requirements. The meeting on Wednesday will discuss adjustments to large global banks’ surcharges and requirements for regional banks. Future reforms may include indexing regulatory requirements to the economy’s size, allowing banks to grow without stricter rules. However, Bowman emphasized that strong bank capital remains crucial for stability, and changes should not undermine its importance. The industry argues that current rules hinder their activities and need to be revised.



Read more at Yahoo Finance: Fed’s Bowman eyes broad set of bank capital reforms