WASHINGTON (Reuters) – U.S. President Joe Biden’s administration is preparing a plan to urge federal banking regulators to impose new rules on midsize banks after the collapse of Silicon Valley Bank earlier this month, reports the Washington Post on Wednesday, citing two sources close to the preparations.
The recommendations envisaged by the White House relate to the restoration of increased supervision of banks whose assets reach between 100 billion and 250 billion dollars, indicates the daily.
During the financial crisis of 2008, the United States had reinforced its regulations on banks with the framework law of the “Dodd-Frank Act” but this was partially revised under the presidency of Donald Trump.
Among other things, the changes introduced increased the threshold above which banks are considered to present a systemic risk and are subject to stricter supervision from $50 billion to $250 billion.
The White House could not immediately be reached for comment on the Washington Post report.
Draft bank regulations are still in the works, and any measures will have to be implemented by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), says the Washington Post.
Possible measures include requiring banks to have higher capital requirements, safer assets relative to risky lending, and ready-made plans to deal with a crisis as well as more frequent stress tests, according to the newspaper.
(Written by Susan Heavey in Washington; with contributions from Shivani Tanna in Bangalore; Blandine Hénault for the , editing by Tangi Salaün)
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