Fed to Unveil Relaxed Bank Capital Proposal in Coming Week

Vice Chair for Supervision at the US Federal Reserve Michelle Bowman

Photographer: Al Drago/Bloomberg

US lenders will get relaxed capital proposals from regulators in the coming week, the Federal Reserve’s top bank cop said Thursday, in a move applauded by the banking industry.

“These changes to the capital framework eliminate overlapping requirements, right-size calibrations to match actual risk, and comprehensively address long-standing gaps in our prudential framework,” Fed Vice Chair for Supervision Michelle Bowman said at a Cato Institute event.