The Federal Reserve Board of Governors last week approved final rules that tailor its regulations for domestic and foreign banks to more closely link regulatory requirements to the institutions’ risk profiles. The largest and most complex banks remain subject to strident requirements, while banks with less risk will have to jump through fewer compliance hoops.
The final rules “maintain our objective” to “develop a regulatory framework that more closely ties regulatory requirements to underlying risk,” said Randal Quarles, Federal Reserve Board vice chair for supervision, in a press release.
