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  1. Fed's Deregulation Reduces Capital Requirements for Large U.S. Banks by 6%

Central Banks 1

  • Fed and agencies cut capital requirements for eight GSIBs by 6%, shaving $60 bn in capital buffers.
  • Leverage ratio and GSIB surcharge weakened, lowering resilience of systemically important banks.
  • Proposed U.S. Basel III implementation falls short of international standards, risking a global regulatory race to the bottom.
  • Eight GSIBs hold roughly 60% of banking sector assets, making the cuts significant for financial stability.
  • Critics warn deregulation could boost short‑term growth but increase long‑term financial‑system risk.