US regulators plan to adjust bank capital rules to encourage lending

Golden Ten Data reported on March 11 that U.S. regulators plan to introduce a series of new capital requirements aimed at encouraging some Wall Street banks and their smaller competitors to increase lending. According to sources, officials from the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) may announce relevant proposals as early as next week, which are expected to include three key capital-related measures. One plan is to revise important rules in the U.S. bank capital proposal "Basel III." Federal Reserve Vice Chair for Supervision Bowman stated last month that the proposal would be launched before the end of March. Another measure will allow medium-sized banks to use standardized methods when calculating capital levels, addressing concerns about smaller banks needing to bear the costs of more complex models. The Federal Reserve is also preparing to propose a plan to adjust the additional capital requirements for U.S. global systemically important banks (G-SIBs), linking them to changes in nominal GDP. This will make the capital buffers of large banks more aligned with international standards.