Banca March| The Fed has proposed, in its role as supervisor of the US banking sector, to apply stricter controls on capital levels to a larger number of institutions. This role will include, according to the new plan, those financial institutions with assets of at least $100 billion. According to Michael S. Barr, vice-president for supervision, with this new threshold, a greater number of institutions will be subject to stricter capital rules than in the current scenario, which applies to institutions with business outside the US or with at least $700 billion in assets. If the proposal goes through, the adjustments would require banks with at least $100 billion in assets to take into account unrealised gains and losses on their available-for-sale (AFS) securities when calculating their regulatory capital, thereby improving the transparency of regulatory capital ratios by better reflecting the actual loss absorbency of these banks.
Fed wants to expand number of supervised banks by including those with assets of at least $100 billion
