The eight biggest U.S. banks must boost capital levels by a total of about $68bn under new rules, U.S. regulators said on Tuesday, prompting industry complaints that less-stringent global standards will give overseas competitors an advantage.
The New York Post reports that the rules would limit banks’ reliance on debt, part of efforts to prevent another financial crisis. By 2018, banks must rely more on funding sources such as shareholder equity, rather than borrowing money.
Banks’ insured subsidiaries face tougher limits and must boost capital holdings by a total of about $95bn, regulators said.
Officials said most firms are already on track to comply and could meet the requirements by retaining earnings, or could shrink or restructure some assets to reduce capital needs.
The final rules show regulators are unwilling to budge from an increasingly tough stance on banking requirements, as they seek to shore up banks after the 2007-2009 financial crisis.
To access the complete New York Post article hit the link below: