Fed To Study Tougher Rules For Midsize Banks After SVB, WSJ Says
The Federal Reserve is considering changes to its rules governing midsize banks following the collapse of three lenders, the Wall Street Journal reported.
(Bloomberg) -- The Federal Reserve is considering changes to its rules governing midsize banks following the collapse of three lenders, a move that may entail extending restrictions currently applying only to the largest Wall Street firms, the Wall Street Journal reported.
The Fed is reviewing tougher capital and liquidity requirements and measures to strengthen annual stress tests that assess banks’ ability to withstand a recession, the Wall Street Journal reported, citing people familiar with the matter it didn’t identify. Under the potential plans, firms between $100 billion to $250 billion in assets would face tougher rules.
Representatives for the Fed didn’t immediately respond to a request for comment
US regulators announced a slate of measures on Sunday, including the Federal Reserve’s creation of a new lending program for banks, following the demise of Silvergate Capital Corp. and SVB Financial Group. The measures are aimed at ensuring the banks can meet any customer requests to withdraw money and their announcement also coincided with the closure of New York’s Signature Bank by regulators.
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