Fed Proposes Tougher Capital Rules for Big Banks

The Federal Reserve plans to increase capital requirements for banks with over $100 billion in assets to prevent financial instability.
The proposal comes after the failures of three major U.S. banks and aims to balance bank safety and effectiveness.
Stricter oversight and stress tests will be applied to large banks, with some facing similar regulation as globally systemic banks.
The new rules could take years to implement but are intended to direct bigger banks to hold more in reserve.
The Fed also plans to address inflation in the wake of the COVID-19 pandemic.