Tougher rules were already on the way for the biggest lenders before the March failures of Silicon Valley Bank and another bank sent tremors through the industry. Since then, regulators have said they plan to apply new rules to a wider range of banks. Institutions with at least $100b in assets might have to comply, effectively lowering an existing $250b threshold for which regulators have reserved their toughest rules.
“Higher capital requirements are unwarranted,” said Kevin Fromer, the chief executive of the Financial Services Forum, which represents the largest U.S. banks. “Additional requirements would mainly serve to burden businesses and borrowers, hampering the economy at the wrong time.”