The U.S. Federal Reserve Board has finalized rule changes that aim to reduce compliance requirements for firms with less risk, while maintaining the strictest requirements for the largest and most complex banks.
The Fed estimated that the changes will decrease required capital by 0.6% overall, and lower required liquid assets by 2% for banks with assets of at least US$100 billion.
The rules don’t curb the requirements for firms in the highest risk categories, including U.S. global systemically important banks, the Fed noted.
“Our rules keep the toughest requirements on the largest and most complex firms,” said Fed chair Jerome Powell. “In this way, the rules maintain the fundamental strength and resiliency that has been built into our financial system over the past decade.”
The new rules will take effect 60 days after being published in the Federal Register.