Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; etc.
Summary
This proposed regulation changes how the biggest U.S. banks must maintain financial reserves to stay stable and protect against crises. The rule adjusts the leverage ratio requirements—essentially how much cash and safe assets large banks must keep on hand—which could affect how much money these banks lend to businesses and consumers.
Key Points
- 1The rule modifies capital requirements specifically for the largest U.S. banks that regulators consider 'systemically important'—meaning their failure could harm the entire financial system
- 2Banks would need to adjust their leverage ratios, which measure how much money they have compared to their loans and investments
- 3Changes could influence how much credit banks are willing to extend to businesses and individuals, potentially affecting loan availability and interest rates
- 4The Federal Reserve is accepting public comments on this proposal until August 27, 2025, before making a final decision
- 5The regulation applies to major bank holding companies and their subsidiary banks, affecting institutions like JPMorgan Chase, Bank of America, and Wells Fargo
Key Dates
July 10, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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