The Federal Reserve Plans to Ease Leverage Requirements for Large Banks
On June 26, the Federal Reserve disclosed plans to relax key banking capital regulations. The documents indicate that the Federal Reserve proposed reforms to ease the enhanced supplementary leverage ratio requirements for large banks. Federal Reserve Chairman Powell stated that, given the significant increase in the size of relatively safe assets on bank balance sheets, reconsidering the relevant rules is a prudent move. The statement showed that Federal Reserve Governors Barr and Kugar opposed the proposed reforms. However, Federal Reserve Governor Bowman stated that the adjustments would enhance the resilience of the U.S. Treasury market and reduce market distortions.