Fed Eases Bank Capital Rules, Sparking Dissent | JQJO

The Federal Reserve proposed easing a key capital rule for banks, aiming to boost Treasury market liquidity. The enhanced supplementary leverage ratio (eSLR), regulating bank capital, is seen as overly restrictive. The proposal would reduce capital requirements for large banks by approximately $13 billion, lowering the range to 3.5%-4.5% from 5%. While some officials support the move, citing improved market resilience, others oppose it, fearing reduced safeguards and increased risk-taking by banks.