Yellen Says Higher Capital Rules May Be Needed for Big Banks

Federal Reserve Chair Janet Yellen said additional capital may be required for large U.S. banks whose source of funding could be at risk during a financial crisis.

A study by the Basel Committee on Banking Supervision “provides some support for the view that there might be room for stronger capital and liquidity standards for large banks than have been adopted so far,” Yellen said in prepared remarks for a speech in Stone Mountain, Georgia. “Tightening risk-based capital and liquidity requirements would, on net, provide economic benefits.”