U.S. banking regulators are contemplating changes to one of the key post-financial crisis reforms, the Volcker Rule, which requires banks to reduce their exposure to proprietary trading, hedge funds and private equity.
The Office of the Comptroller of the Currency (OCC) announced on Wednesday that it’s seeking public input on proposed revisions to the Volcker Rule that aim to ease the compliance burden on banks.
“In particular, the OCC invites input on ways to tailor the rule’s requirements and clarify key provisions that define prohibited and permissible activities,” it says. “The agency also seeks input on how the federal regulatory agencies could implement the existing rule more effectively without revising the regulation.”
“A bipartisan consensus has emerged that the Volcker Rule needs clarification and recalibration to eliminate burden on banks that do not engage in covered activities and do not present systemic risks,” says Keith Noreika, acting comptroller of the currency, in a statement. “Regulators do not have a monopoly on good ideas. Public input will help inform our path forward with the views, concerns, and data of those affected by this rule and provides for a more inclusive and transparent process.”
The deadline for comments is 45 days after the proposals are published in the Federal Register.