The Federal Reserve is weighing tougher rules for midsized banks as it seeks to avoid a redux of the recent collapse of Silicon Valley Bank that forced government authorities to intervene at the weekend.
The US central bank is reviewing the capital and liquidity requirements it imposes on banks, especially those with between $100bn and $250bn in assets, a person familiar with the matter said on Tuesday. It will also assess the stress tests it carries out annually, which evaluate lenders’ ability to withstand adverse economic and financial scenarios, among a host of other rules.
The review is part of a broader appraisal the Fed announced Monday of how it supervised and regulated Silicon Valley Bank, which imploded last week and sparked alarm of broader contagion. The central bank is among US regulators who are facing questions over whether they missed signs of mounting problems at SVB, with some experts saying the problems were obvious.