Fed Plans Higher Bank Oversight Thresholds Amid Economic Growth

The Federal Reserve is planning to raise the asset thresholds for stricter bank oversight. According to unnamed sources, the Fed is considering lifting the lower threshold from $100 billion in assets to around $150 billion and the highest threshold from $700 billion to around $1 trillion.

These thresholds trigger additional regulation, including stress tests of balance sheets, liquidity, and capital. Raising them would account for inflation and economic growth since 2019 and free some banks from these regulations.

The Fed could propose the higher thresholds later this year. This move comes after Federal Reserve Vice Chair for Supervision Michelle Bowman said in January that the Fed would consider reindexing the thresholds.