Michael Barr, the US central bank’s top regulator, announced a revised plan this week that would impose a 9% rise in capital requirements on the biggest lenders, down from the 19% proposed last summer. The revised rules are a win for banks, which had waged a lobbying blitz against the proposal.
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Federal Reserve halves proposed capital requirement rise for largest US banks
In what Barr characterised on Tuesday as a “reproposal”, the latest rules will still introduce capital requirements relating to operational risks. These requirements have previously been based solely on the loans and investments on banks’ books.
