A top US banking regulator has announced tougher capital rules for a broader range of lenders in a bid to shore up a financial system rattled by the failure of several regional banks earlier this year.
Michael Barr, vice-chair for supervision at the Federal Reserve, on Monday unveiled regulatory changes for institutions with $100bn or more in assets, proposing harsher capital standards that will require banks to stow away additional capital that can be used to absorb any losses.
“The comprehensive set of proposals that I have described here today would significantly strengthen our financial system and prepare it for emerging and unanticipated risks, such as those that manifested themselves in the banking system earlier this year,” he said at an event hosted by the Bipartisan Policy Center in Washington DC.