The proposal would lower a bank holding company’s capital requirement under the eSLR to a range of 3.5% to 4.5%, down from the current 5%. — Bloomberg
WASHINGTON: The top US bank regulators plan to reduce a key capital buffer by up to 1.5 percentage points for the biggest lenders after concerns that it constrained their trading in the US$29 trillion Treasuries market.
The Federal Reserve (Fed), Federal Deposit Insurance Corp (FDIC) and the Office of the Comptroller of the Currency (OCC) are focusing on what’s known as the enhanced supplementary leverage ratio (eSLR ), according to people briefed on the discussions.
