On Thursday, October 10, the Fed, in collaboration with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, voted to adjust capital, liquidity, and resolution plan requirements for domestic and foreign banks. In his opening statement, Vice-Chair for Supervision Randal Quarles shared his belief that the Fed has achieved “a regulatory framework that more closely ties regulatory requirements to underlying risks, in a way that does not compromise the strong resiliency gains we have made since the financial crisis.”
The Fed’s new framework modified the regulatory requirements for G-SIBs, super-regional, and regional banks according to several key variables, including size, off-balance sheet exposure, and reliance on short-term wholesale funding. Federal Reserve Governor Lael Brainard voted against the new rules, stating in her remarks that “at a time when the large banks are profitable and providing ample credit, I see little benefit to the banks or the system from the proposed reduction in core resilience that would justify the increased risk to financial stability in the future.”

Read more via federalreserve.gov.