US President Joe Biden’s administration will this week require the US Federal Reserve (Fed) to tighten regulations for midsize banks with assets ranging from $100 billion to $250 billion. Wrote The Wall Street Journal (WSJ), citing sources.
According to the addressees of the publication, it is expected that the capital and liquidity requirements of such credit institutions will be tightened. The Fed may also speed up stress tests that measure banks’ ability to weather downturns.
The White House may call for further expansion of deposit insurance to be investigated. By May 1, the Federal Deposit Insurance Corporation will report on possible policy changes in this area.
As the newspaper sources indicate, Biden’s advisers are delaying taking some measures for fear of being criticized for helping the rich.
Press service of the Federal Deposit Insurance Corporation (FDIC) in the first half of March reported It’s about the collapse of Silicon Valley Bank, an American investment that ranks 16th in the United States by assets. SVB has been the largest bank to fail in the US in the last 15 years.
At the same time, New York State officials closed Signature Bank due to systemic risks.