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A raft of tougher capital and liquidity requirements are under review, as well as steps to beef up annual “stress tests” that assess banks’ ability to weather a hypothetical recession, according to a person familiar with the latest thinking among U.S. regulators. The rules could target firms with between $100b to $250b in assets, which at present escape some of the toughest requirements.
“The rules were not meant to only apply to the largest handful of systemically important firms,” Mr. Barr said in a 2018 op-ed article in American Banker. “It is the very antithesis of macro-prudential supervision to focus only on the largest handful of financial firms and to ignore risks elsewhere in the system.”
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