The Fed scales back proposal for bank capital requirements

Published On Sep 10, 2024, 11:53 AM

The Federal Reserve has revised its proposal regarding capital requirements for banks, scaling back the initially suggested increases. The new plan proposes a 9% increase in capital levels for large banks like JPMorgan Chase and Bank of America, a significant reduction from the previous 19% increase. Smaller banks will also not face similar rigorous requirements, but they will still need to account for unrealized gains and losses in their capital calculations. These changes are largely a response to concerns that stricter requirements could lead to higher borrowing costs for consumers and businesses, potentially impacting overall economic activity. The proposal is now up for public comment.