Michelle Bowman, the Federal Reserve’s vice chair for supervision, is set to meet with the finance chiefs from the largest U.S. banks next month to outline the central bank’s revised approach to the implementation of global capital standards,
The Fed’s updated plans may be a sharp pivot from the tougher Biden-era proposals (i.e., Basel Endgame) the monetary authority has recently moved to scale back under, JPMorgan Chase Vice Chairman Daniel Pinto said at an event in Frankfurt, Germany, Bloomberg reported.
It was reported early in the week that the Fed and other U.S. banking watchdogs have agreed on a final plan to ease key capital requirements, sending a proposal for the so-called enhanced supplementary leverage ratio to the White House for review. With lower capital requirements, banks could use more of their money for lending and investment instead of holding it in reserve.
With some adjustments to the capital rules for big banks, the revised plan is expected to “more or less will keep the capital relatively flat” relative to what they are now, Pinto said, Bloomberg reported.
The Fed didn’t immediately respond to Seeking Alpha’s request for comment.