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babs3mo
Jun 5, 2023 4:33 AM

WSJ: Big U.S. banks could face 20% capital hike 

Blockchain Coinvestors Acquisition Corp. INASDAQ

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Coin World reported that U.S. regulators are preparing to force large banks to strengthen their financial foundations, a move that will help strengthen the financial system's resilience to risks after a series of mid-sized bank failures this year. The reforms, to be proposed by regulators as early as this month, could raise overall capital requirements for large banks by an average of about 20%, according to people familiar with the matter. The exact amount will depend on the banks' business activity, with the biggest increases expected to be at large U.S. banks with heavy trading operations. Banks that rely heavily on fee income, such as investment banking or wealth management businesses, could also face significantly higher capital requirements, the buffer they must hold to absorb potential losses. (Wall Street Journal)
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