BlockBeats reported on June 18 that major U.S. banking regulators plan to reduce critical capital buffer requirements for large banks by up to 1.5 percentage points. This move follows industry concerns that current regulations have constrained trading activities in the $29 trillion U.S. Treasury market.
According to sources, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) are focusing on the so-called enhanced Supplementary Leverage Ratio (eSLR), which applies to U.S. systemically important banks such as JPMorgan Chase, Goldman Sachs, and Morgan Stanley. The new proposal aims to lower the capital requirements for bank holding companies under eSLR from the current 5% to a range of 3.5%-4.5%. Similarly, capital requirements for bank subsidiaries are expected to be reduced from 6% to the same range.
This adjustment is similar to the "customized" revisions to eSLR calculations for systemically important banks introduced during the Trump administration in 2018, though specific provisions may still be subject to modification. (Jin10)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.