U.S. regulators plan to introduce new capital rules to promote bank lending — Bloomberg

Investing.com – U.S. regulators plan to propose new capital requirements aimed at encouraging Wall Street banks and mid-sized lenders to increase lending.

According to Bloomberg News, citing sources familiar with the matter, officials from the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency are expected to announce these proposals as early as next week. The sources said the plan includes three key measures related to capital.

One of the proposals is a revised version of the U.S. bank capital framework Basel III. Federal Reserve Vice Chair for Supervision Michelle Bowman said last month that the revised proposal would be released by the end of March.

Another measure would allow mid-sized lenders to use standardized methods when calculating their capital figures. The sources said this addresses concerns that small firms would have to bear the costs of using the more complex versions employed by Wall Street banks.

The Fed will also announce a plan to adjust the surcharge for U.S. global systemically important banks, linking it to changes in nominal gross domestic product. The sources indicated this will make the capital buffers of large banks more aligned with international standards.

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