FDIC opposes Federal Reserve's reduced bank capital proposal, raising concerns about lending costs and competitiveness.
The Federal Reserve's revised bank capital proposal, which reduces the required capital increase for major banks from 19% to 9%, is facing significant opposition from the FDIC. At least three of its five directors, including key figures like Rohit Chopra, oppose the changes, raising concerns about their potential impact on lending costs and U.S. banks' competitiveness. This discord could complicate the regulators' efforts to finalize the Basel III endgame by mid-2025.
September 20, 2024
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