Fed Plans Asset Threshold Hikes for Bank Oversight

The Federal Reserve is planning to raise asset thresholds for bank oversight, which could reduce additional compliance costs for some lenders and encourage industry consolidation.

The central bank will propose changes to the current framework later this year. The adjustments would apply to balance-sheet stress tests, liquidity requirements, capital rules, and other enhanced regulations.

The proposed revisions would account for inflation and economic growth. Currently, regulatory requirements become more stringent when a bank's assets reach $100 billion, with additional increases at $250 billion and $700 billion.

Lenders have argued that the thresholds have not kept pace with economic growth and result in requirements that exceed the risks posed by some banks.