In a bid to shore up the system after this year’s banking crisis, U.S. regulators are planning fresh rules that will force bigger banks to lift their capital requirements by an average 20%, The Wall Street Journal reported on Monday, citing sources. Any bank that relies on income from fees may also be swept up, in the first of a series of tougher rules en route for the industry. Regulators want banks to measure their loss-absorbing risk buffers on a more transparent and globally comparable basis. The Federal Reserve is spearheading the effort to boost requirements, alongside the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, with all three expected to seek comment on the proposals, followed by a vote and a few years for implementation. As part of the changes, some midsize banks will no longer be allowed to mark losses on securities held, which is a factor blamed on SVB’s collapse.
