The Federal Reserve’s regulatory chief has said that larger banks will need more financial cushions in the future to help boost system resilience after a spate of midsize bank failures earlier this year.
“Events over the past few months have only reinforced the need for humility and skepticism, and for an approach that makes banks resilient to both familiar and unanticipated risks,” Michael Barr, the Fed’s vice chair for supervision, said.
Regulators are expected to propose changes in July or August.
Under the plan, large banks might be asked to hold an additional 2 percentage points of capital, or an additional $2 of capital for every $100 of risk-weighted assets.
