U.S. bank regulators consider new rules for regional banks in times of crisis, Wall Street Journal reports

Folks stroll carrying masks outdoors The Federal Reserve Financial institution of New York in New York Metropolis, U.S., March 18, 2020. REUTERS/Lucas Jackson/File Picture/File Picture

Sept 18 (Reuters) – A bunch of financial institution regulators appointed by U.S President Joe Biden is contemplating new guidelines which would require huge regional banks so as to add monetary cushions that can be utilized in occasions of disaster, the Wall Avenue Journal reported on Sunday.

The brand new steps embrace the regional banks elevating long-term debt that may assist take in losses in circumstances of insolvency, the WSJ reported including three folks aware of the matter.

The WSJ report comes over every week after U.S. Federal Reserve chief Michael Barr mentioned that there quickly could also be harder guidelines on massive regional lenders after a ‘holistic’ evaluate of financial institution capital necessities is concluded. learn extra

(This story refiles to clarify WSJ attribution in headline)

Reporting by Rachna Dhanrajani in Bengaluru, Enhancing by William Maclean

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