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Federal banking regulators proposed rulemaking designed to increase capital requirements for large banks and large-scale traders.
The proposed rule, jointly issued Thursday by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the Treasury Department’s Office of the Comptroller of the Currency (OCC), would apply to institutions with total assets of $100 billion or more and other banking organizations with significant trading activity. Intentions to put forward the rule predated the banking turmoil kicked off by the collapse of Silicon Valley Bank in March, which has led to increased calls for measures to increase the stability of the U.S. banking system.
“Recent events demonstrated the effects that stress at a few large, regional banking organizations could have on the stability, public confidence, and trust in the banking system,” said Acting Comptroller of the Currency Michael Hsu in a statement. “While the recent events may be attributed to a variety of factors, the effect on financial stability supports further alignment of the regulatory capital framework across all large banking organizations with $100 billion or more of assets.”
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