Seventeen years onfrom the global financial crisis, regulators are cutting redtape for their banks in a ‍bid to keep lenders competitive andstimulate their economies.The Trump administration is leading the charge, including withmeasures that will reduce the amount of capital lenders need toset aside. Lowering capital requirements ​is worrying someobservers that the U.S. has triggered a global rowback fromregulations designed to keep financial systems safer, just aschatter about ‌market bubbles and financia ...

Core Viewpoint - The Federal Reserve is set to introduce a more industry-friendly version of the "Basel III Endgame" capital rules by the end of 2025 or early 2026, responding to banking industry concerns about previous proposals that significantly increased capital requirements [1][2][3]. Group 1: Regulatory Changes - The Federal Reserve, along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, is actively working on a re-proposal of capital rules that align with global standards for risk measurement and capital assignment [2]. - The previous attempt under the Biden administration to increase capital requirements for large banks faced strong opposition and was ultimately abandoned [3]. - Current regulators, appointed by President Trump, are aiming to create a rule that addresses industry concerns and is expected to have a lighter capital impact on banks [4]. Group 2: Reconsideration of Capital Requirements - Regulators are considering "rightsizing" capital requirements imposed on larger banks following the 2008 financial crisis, suggesting that the post-crisis framework needs reevaluation [4]. - The effort led by the Fed Vice Chair for Supervision is framed as a reconsideration of existing requirements to enhance their effectiveness and efficiency, rather than a weakening of regulations [5]. - The intention is not to reduce the number of requirements or capital levels but to ensure that all regulations work cohesively and transparently [5][6].