Fed wants to expand number of supervised banks by including those with assets of at least $100 billion


Banca March| The Fed has proposed, in its role as supervisor of the US banking sector, to apply stricter controls on capital levels to a larger number of institutions. This role will include, according to the new plan, those financial institutions with assets of at least $100 billion. According to Michael S. Barr, vice-president for supervision, with this new threshold, a greater number of institutions will be subject to stricter capital rules than in the current scenario, which applies to institutions with business outside the US or with at least $700 billion in assets. If the proposal goes through, the adjustments would require banks with at least $100 billion in assets to take into account unrealised gains and losses on their available-for-sale (AFS) securities when calculating their regulatory capital, thereby improving the transparency of regulatory capital ratios by better reflecting the actual loss absorbency of these banks.

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