High buffer preparations for major banks in the US

While the effects of the banking crisis experienced in small-scale local banks in the US are still fresh in our memories, according to the Wall Street Journal, a 20 percent increase in capital requirements is planned for large US banks. US regulators are preparing to force large banks to increase their financial support in order to increase the resilience of the system after medium-sized banks went bankrupt this year. According to the news in the Wall Street Journal based on sources related to the subject, the changes that regulators plan to draft this month are being considered to increase the total capital requirements of large-scale banks by an average of 20 percent. There have been previous statements by the Fed in the US that banks will be scrutinized more tightly. In a speech to Congress in mid-May, a senior Fed regulatory official said that the Fed would announce a plan to tighten capital rules for banks this summer and that supervisors would ensure that banks are scrutinized more aggressively following recent bank failures. Michael Barr, the Fed’s vice chairman for supervision, said the agency was “carefully considering” rule changes for larger regional banks with assets exceeding $100 billion. He said the Fed expects to unveil a plan to overhaul capital and liquidity rules this summer, which would set off an ambitious rule rewriting process for banking regulators.