The U.S. plans to relax bank capital regulations and ease restrictions on U.S. debt trading

Odaily News The Federal Reserve, FDIC and OCC are considering lowering the "enhanced supplementary leverage ratio" (eSLR) of large banks from the current 5% to 3.5%-4.5% to address the constraints imposed by capital rules on the $29 trillion U.S. Treasury market transactions. The proposal is expected to be reviewed by the Federal Reserve on June 25, or the public opinion on whether to exclude U.S. Treasury assets from the calculation will be sought at the same time. Analysts pointed out that although the reform is intended to enhance the ability of banks as intermediaries, it also raises concerns about the fragility of the financial system. (Bloomberg)