The Fed, together with other US regulators, has faced strong criticism from the banking industry over what would constitute the biggest change to capital requirements since the Dodd-Frank act was introduced in the wake of the global financial crisis. The current proposals would require the biggest US banks to hold a greater amount of capital against their assets, but banks have argued that this would constrain their ability to lend without making the financial system significantly safer.
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Fed likely to make ‘material’ changes to controversial bank capital proposals, Jay Powell says
“I do expect that there will be broad and material changes to the proposal,” he said, as he gave his semi-annual testimony on monetary policy to Congress.
