WSJ: US Federal Reserve considers tougher rules for mid-sized banks
According to a newspaper report in the Wall Street Journal, the US Federal Reserve wants to reconsider a number of its guidelines for medium-sized banks. She is now considering tightening capital and liquidity rules for smaller banks. Like the big banks, they could also be subjected to an annual stress test, as the Wall Street Journal reported on Tuesday evening. Hypothetical scenarios are used to examine how well the institutes could survive a recession.
The new rules could affect banks with $100 billion to $250 billion in assets, it said. Since 2018, there have been particularly strict regulations and stress tests only for banks with assets of $250 billion or more. Under the government of Biden’s predecessor Donald Trump, smaller institutes were relieved. Now these easing could – at least in part – be reversed. Democratic senator and former presidential candidate Elizabeth Warren is already working on a corresponding bill.