Katanga Johnson
Federal Reserve is considering changes to its oversight of midsized banks following the collapse of three lenders in the past week, according to a person familiar with the matter.
Regulators at the US central bank are weighing rules that could bring capital and liquidity thresholds closer to strictures that the largest Wall Street firms face. One change under consideration could impact so-called stress tests, an exercise that examines lenders’ ability to withstand a crisis, said the person, who asked not to be identified discussing internal deliberations.
A representative for the Fed declined to comment.
The effort to reconsider regulations for banks with assets between $100 billion and $250 billion follows government takeovers of Silicon Valley Bank on Friday and Signature Bank on Sunday. Last Wednesday, crypto-friendly Silvergate Capital Corp. announced that it was voluntarily liquidating its bank.
Read More: US Backstops Bank Deposits to Avert Crisis After SVB Failure
On Sunday, the Fed, the Federal Deposit Insurance Corp. and Treasury Department took extraordinary measures to quell concerns. In one move, the Fed created a new lending program for banks, which has been the subject of intense political debate ever since.
The Wall Street Journal first reported the Fed’s review.
— With assistance by Sally Bakewell
