US banking sector going against new capital rules

Long range: A street sign is seen near the Morgan Stanley worldwide headquarters in New York. The bank says the largest banks may take up to four years to set aside profits to comply with the new capital rules. — Reuters

WASHINGTON: Now that regulators in Washington have unfurled a hefty reform package of post-financial crisis capital regulations, banking industry advisers are honing in on what they consider most disruptive, including risk management requirements that could affect real estate lending, consumer credit and wealth management.

In a joint proposal on July 27, the top three US bank regulators proposed a thousand-page overhaul that would in aggregate require banks to set aside an additional 16% in capital the regulators believe is needed to strengthen the financial system.