US regulators are considering easing capital rule on Treasury trades, potentially benefiting big banks

From Zacks Investment Research: 2025-06-19 14:20:00

U.S. regulators are considering easing SLR rules to boost liquidity in the $29T Treasury market, potentially reducing big banks’ capital requirements by up to 1.5 percentage points. This move could enhance trading flexibility, improve Treasury liquidity, and boost potential trading profits for banks like JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Wells Fargo. The proposed adjustment would lower the capital requirement from 5% to a range of 3.5% to 4.5%, providing banks with more room for expansion and investment. However, the impact of these changes will depend on how banks adapt and if further reforms are introduced.



Read more at Zacks Investment Research: US Regulators Mull Easing Banks’ Capital Rule on Treasury Trades – June 19, 2025