A proposed rule that would ease capital requirements for global systemically-important banks (GSIBs) has run into staunch opposition from community bankers who argue that doing so would create greater risk of a financial crisis with far-reaching consequences.
The rule, proposed jointly by the Federal Reserve and the Office of the Comptroller of the Currency, would recalibrate the Fed board’s enhanced supplementary leverage ratio (eSLR) standards applicable to GSIBs and their insured depository institution subsidiaries.
Find out what the rule’s opponents are saying about rolling back standards introduced in 2013 to address the problem of too-big-to-fail financial institutions.