US Banks Face Capital Jump With More Lenders Roped In to Comply
- Regulators may subject more lenders to tougher rules
- Authorities are drafting plan to boost capital requirements
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Large US banks may have to boost their capital by an average 20% and a broader swath of lenders would face strict requirements for setting aside money under a draft plan from US regulators to bolster the financial system.
Specific increases will depend on a lender’s business model, and banks with at least $100 billion in assets may have to adhere to the new requirements, according to people familiar with the proposals. That’s far lower than the existing $250 billion threshold where many of the toughest rules kick in, which means dozens of regional US banks might have to meet the new standard.