Daily Management Review

US White House will demand tougher rules for mid-size banks after SVB bankruptcy


The White House will call for stricter regulations for midsize banks with holdings between $100 billion and $250 billion this coming week. The U.S. Federal Reserve (Fed) and other authorities will receive recommendations, says The Wall Street Journal (WSJ).

Alpha Photo
Alpha Photo
The Fed reportedly started reviewing its guidelines for medium-sized banks after Signature Bank and Silicon Valley Bank (SVB) declared bankruptcy in early March, according to the publication. It is anticipated that watchdogs will tighten the capital and liquidity standards for these banks. The Fed may also improve stress tests, which gauge banks' resilience to downturns.

According to the Wall Street Journal, the White House might require to look into expanding deposit protection further. A report on potential adjustments to this area's policy that will be finalized by the Federal Deposit Insurance Corp. by May 1 is required.

The US government declined to remark on the news. According to the newspaper's sources, U.S. Vice President Joe Biden's advisors are still apprehensive to make some decisions out of concern for backlash for aiding the wealthy.

source: wsj.com