Fed Eases Oversight Thresholds for Large US Banks

The Federal Reserve is planning to ease oversight thresholds for large US banks, allowing them to expand without facing additional regulatory requirements.

This move comes as the central bank considers reindexing the asset thresholds that determine which lenders are subject to stricter stress-testing, liquidity, capital and reporting requirements.

Under current rules, these requirements become more stringent when a bank reaches $100 billion in assets, with further thresholds at $250 billion and $700 billion. The Fed is considering raising the highest threshold closer to $1 trillion and adjusting other thresholds accordingly.

Banks such as U.S. Bancorp, Capital One, PNC Financial, and Truist are among those that could gain more room to grow without facing some of the Fed's toughest requirements.