Bessent wants deeper US bank reforms


Regulatory overhaul: Bessent outside the White House in Washington. The Trump administration is pursuing a broad reform agenda aimed at cutting rules governing financial institutions, including capital requirements. — Bloomberg

WASHINGTON: US Treasury Secretary Scott Bessent on Monday called for deeper reforms of what he called an antiquated financial regulatory system and says regulators should consider scrapping a “flawed” Biden-era proposal for a dual capital requirement structure for banks.

Speaking at the start of a Federal Reserve (Fed) regulatory conference, Bessent said excessive capitalisation requirements were imposing unnecessary burdens on financial institutions, reducing lending, hurting growth and distorting markets by driving lending to the non-bank sector.

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