The Federal Reserve plans to introduce new rules to significantly relax capital requirements for large banks

According to people familiar with the matter, the Federal Reserve has submitted the outline of a revised plan to other US regulators. The plan will significantly relax the capital requirements for large Wall Street banks proposed during the Biden era. People familiar with the matter said that according to official estimates, under the Fed’s new plan, the overall capital increase for most large banks will be between about 3% and 7%. Although the outline did not provide specific forecast data, this estimated range is significantly lower than the 19% increase in the original proposal for 2023, and lower than the 9% increase proposed in the compromise plan last year. Some people familiar with the matter said that banks with larger trading portfolios may face smaller capital increases, or even reductions. (Jinshi)