Regulatory authorities are pushing forward the finalization of bank capital plans related to US Treasury securities.
According to informed sources, US banking regulatory agencies have reached an agreement on relaxing a series of capital requirements. Banking institutions have stated that the current capital requirements limit their ability to hold more US Treasuries. The sources revealed that officials from the Federal Reserve and other key agencies have recently submitted the final plan for the so-called "enhanced supplementary leverage ratio" to the White House for approval. The relaxed requirements mean that large banks will be required to hold a lower percentage of capital to total assets, which is largely consistent with the proposal announced in June. This rule adjustment will benefit large Wall Street lending institutions, as officials from the Trump administration are seeking to relax several banking capital measures introduced after the 2008 financial crisis. However, some large banks had pushed for regulatory agencies to exclude specific assets such as US Treasuries from the revised leverage ratio calculation scope, but this demand was not met.
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