On Tuesday, U.S. financial regulators revealed new regulations for the country’s regional banks issued in order to protect the public in the case of their failure.
According to a joint notice issued by the Treasury Department, Office of the Comptroller of the Currency, Federal Reserve and Federal Deposit Insurance Corp, regional banks with more than $100 billion in assets will be required to hold a long-term debt level in order to minimize losses if they are ultimately seized by the government.
These new regulations will reportedly prevent U.S. banks from diplinishing the FDIC’s Deposit Insurance Fund if they fail.
The U.S. financial regulators’ move comes after three national banks failed this past March.
