Trump officials say simplifying the rules, designed to help banks withstand financial strains, will boost lending and benefit the economy. The changes would cumulatively let the largest banks hold 2.4% less capital, or roughly $20b less, on average.
| less than a minute read
Big banks score win under new plan to loosen capital rules
“An important benefit of these proposals is that they would reduce incentives for traditional lending activities—like mortgage origination, mortgage servicing, and lending to businesses—to migrate outside of the regulated banking sector,” said Michelle Bowman, whom President Trump appointed as Federal Reserve vice chair for supervision.
