WASHINGTON (Reuters) – U.S. bank regulators released a proposal Thursday that would direct the nation’s largest banks to raise their capital, arguing a larger cushion is needed to ensure stability.
The proposal, if implemented, would raise capital an aggregate 16% for larger banks, and also apply several stricter rules to banks with over $100 billion in assets. The sweeping plan would overhaul how banks gauge risk in numerous areas, and in turn how much capital they must hold in reserve.
(Reporting by Pete Schroeder; Editing by Chizu Nomiyama)