new York After the recent bank failures in the USA, according to a newspaper report, the local regulatory authorities could soon issue stricter capital rules. The big banks could be faced with an average of 20 percent higher capital requirements, the Wall Street Journal reported on Monday, citing people familiar with the considerations.
The planned tightening could be officially presented later this month. The exact amount will depend on the size of the banking business. The rate for mega-banks with large trading businesses is likely to increase most significantly.
According to the newspaper, there could also be a sharp increase in capital requirements for institutions such as Morgan Stanley and the credit card company American Express. These are heavily dependent on fee income, for example from investment banking. Morgan Stanley and American Express were initially unable to comment on the report when asked by Reuters.
The US Federal Reserve recently said it was considering stricter rules for financial institutions with assets of over $100 billion. Fed Vice Chairman Michael Barr told a congressional committee in May that the central bank was carefully considering rule changes for larger regional banks.
The background to the considerations are the recent upheavals in the American banking sector. In March, customers began withdrawing massive amounts of funds from regional banks Silicon Valley Bank (SVB) and Signature Bank. When the California SVB collapsed, customers had previously cleared $42 billion in funds from their accounts in just five hours. It was the largest collapse of a US bank since the global financial crisis of 2008.
More: Business with new corporate loans is cooling off