WASHINGTON, June 5 (Reuters) - U.S. banks could face capital hikes of as much as 20% under new rules being prepared by U.S. regulators as part of a global effort to harmonize capital requirements, a person familiar with the matter said on Monday. The proposal is expected to implement a final batch of global bank capital rules laid out by the Basel Committee of banking regulators that are due to take effect at the beginning of 2025. Barr, the Fed vice chair for supervision, added that the central bank was "carefully considering" rule changes for larger regional banks. Randal Quarles, who led Fed regulations before Barr, cautioned in a 2021 speech that fully implementing the remaining Basel requirements could result in capital requirements increases of as much as 20% for the largest banks. The Wall Street Journal reported that the precise amount of capital requirements will depend on a bank's business, with U.S. megabanks with big trading businesses expected to face the largest increases.

Source: Wall Street Journal June 05, 2023 05:10 UTC