#Binance Potential Reforms to Bank Regulations – Supplementary Leverage Ratio (SLR)

U.S. Treasury Secretary Scott Bessent has indicated that significant changes to bank regulations, particularly concerning the Supplementary Leverage Ratio (SLR), could be implemented as early as this summer. The SLR, established after the 2008 financial crisis, mandates that banks hold a certain level of capital against their total leverage, including low-risk assets like the U.S. Treasuries. Bessent suggests that easing these requirements could lower Treasury yields by several basis points and enhance liquidity in the $30 trillion Treasury market .

The banking industry has long advocated for reforms to the SLR, arguing that the current rules are outdated and hinder banks' ability to lend and support Treasury markets. Industry leaders, including the Financial Services Forum and the Bank Policy Institute, support adjustments such as exempting Treasuries and central bank deposits from the SLR calculations .