US regulators plan to relax capital requirements for major banks, potentially releasing billions of dollars.

The Federal Reserve announced proposals on Thursday to ease capital requirements for large Wall Street financial institutions, a move that could free up billions of dollars for lending, stock buybacks, and dividend payments. “These changes will strengthen our overall capital architecture, which will remain robust under the new regulatory framework,” said Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, in a statement. The proposals will undergo a 90-day public consultation period before being finalized. The proposals were developed by Federal Reserve officials, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). The Federal Reserve Board of Governors will formally vote on the plan on Thursday. Officials describe the proposal as part of capital unification. If finalized, these plans, along with measures such as easing rules on leverage ratios and reforming stress tests, will constitute the largest overhaul of bank capital regulations since the 2008 global financial crisis. The Federal Reserve stated in a memo that the combined proposals are expected to “moderately reduce” capital requirements for large banks. (JinshiP)