According to BlockBeats, on June 18, major U.S. banking regulators plan to cut key capital buffer requirements for large banks by as much as 1.5 percentage points. Previously, there were concerns that the current rules restricted banks' trading activities in the $29 trillion Treasury market.
Informed sources say that the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency are focusing on enhancing the Enhanced Supplementary Leverage Ratio (eSLR), which applies to major U.S. systemically important banks such as JPMorgan Chase, Goldman Sachs, and Morgan Stanley. The new proposal aims to lower the capital requirement for bank holding companies under the eSLR from the current 5% to a range of 3.5% to 4.5%. The capital requirement for bank subsidiaries is also expected to be lowered from 6% to the same range.
This adjustment is similar to the customized revision approach to the calculation of the Enhanced Supplementary Leverage Ratio (eSLR) for systemically important banks during the Trump administration in 2018, but specific terms may still be modified.