Regional banks seek Fed revision of 'stress capital buffer' plan in wake of Crapo bill

9 July 2018 8:50am
Nine regional banks are pushing the US Federal Reserve to reconsider a plan to base a firm’s capital requirements on its stress-test results in light of the new law that relaxes Dodd-Frank requirements for small and mid-size banks.

The Fed’s “stress capital buffer” proposal is the second that could be retooled on the heels of the so-called Crapo bill enacted in May. Banks also are seeking modification of the Fed’s planned relaxation of the supplementary leverage ratio, which would ease capital requirements for the very largest firms.

The regional banks — including BB&T, SunTrust, and Fifth Third — said that the stress capital buffers plan would subject banks of at least $50 billion in assets to annual tests to calibrate their buffer.