Regulators Navigate Ongoing Banking and Capital Requirements

Bank regulators are considering an increase in capital requirements as result of the implementation of Basel III, recent turmoil in the sector, and a new comprehensive assessment initiated by Federal Reserve Vice Chair Barr. Increased capital requirements would have the effect of diverting lending activity away from banks, towards less-regulated entities. Recognizing this possibility, FDIC Chair Gruenberg emphasized the need for increased oversight of the nonbank sector. Read More