The Federal Reserve has unveiled plans to relax an important capital rule for big US banks, citing their need to hold more Treasuries and act as intermediaries in the $29 trillion market. The proposed changes would lower the capital requirement for holding companies to 3.5-4.5%, down from 5%. Banking subsidiaries would see a similar reduction, from 6% to 4.5%. The Fed’s decision aims to boost banks’ ability to lend and invest, potentially benefiting the broader economy.
Source: https://www.bloomberg.com/news/articles/2025-06-25/federal-reserve-releases-plan-to-relax-key-bank-capital-rule