SGGP 06/06/2023 07:05

The Wall Street Journal (WSJ) reported on June 5 that US banking regulators will tighten capital regulations for the country's major banks.

Headquarters of the US Federal Reserve Bank (FED) in Washington DC. Photo: VNA

Accordingly, these banks may be required to increase their capital by an average of 20% to enhance the resilience of the financial system after a series of mid-sized US banks went bankrupt this year. WSJ quoted informed sources as saying that US banking regulators are proposing to apply the above changes as early as this June.

The exact amount of capital required will depend on the banks’ business, with large banks expected to raise the most capital, according to the WSJ. Banks such as Morgan Stanley and financial services company American Express, which rely heavily on fee income, may also have to raise capital at a high level.