Core Viewpoint - The U.S. banking industry is set to experience the most significant regulatory easing since the 2008 financial crisis, with proposals to relax the Enhanced Supplementary Leverage Ratio (eSLR) requirements being reviewed by regulators [1][2] Group 1: Regulatory Changes - The Federal Reserve will review the long-awaited reform proposal on eSLR this Wednesday, followed by discussions from the FDIC on Thursday [1] - The proposed adjustment aims to lower the eSLR capital requirement from 5% to 3.5%, potentially benefiting major financial institutions like JPMorgan Chase, Bank of America, Goldman Sachs, and Morgan Stanley by significantly expanding their capital release capacity [1] - This regulatory change is intended to enhance the credit deployment capability of the banking system, injecting more liquidity into the real economy and strengthening the capacity to purchase U.S. Treasury securities [1] Group 2: Market Implications - Market analysts have noted positive signals from the policy shift, indicating that institutions with a higher proportion of traditional investment banking activities will gain greater benefits [2] - The new head of bank regulation at the Federal Reserve, Michelle Bowman, stated that the eSLR reform is just the starting point for a broader restructuring of capital regulations, which will include reassessing additional fees for globally systemically important banks and regulatory thresholds [2] - The regulatory easing is seen as a response to the tight capital constraints exposed during the market turmoil at the onset of the COVID-19 pandemic, with Bowman emphasizing the need for a return to traditional leverage ratios as a capital buffer [2] Group 3: Industry Sentiment - The timing of this regulatory change is favorable for banking executives like JPMorgan's Jamie Dimon, as the financial world anticipates whether this capital easing will mark a paradigm shift in post-crisis banking regulation [3]