Fed's new capital requirement latest fallout from 2023 banking failures
By 
Aaron Nicodemus2024-09-03T15:47:00
The Federal Reserve Board will require more than 30 of country’s largest banks to maintain a minimum percentage of capital in reserve, a percentage which the Fed calculated based on their complexity and whether they are considered a global systemically important bank.
The capital requirements, which take effect Oct. 1, affect 32 banks and holding companies with $100 billion or more in assets, the Fed announced in a press release Wednesday. Previously, capital requirements were only imposed on financial institutions with more than $700 billion in assets, a threshold which applied to a small number of very large banks, the Fed noted.
The move to increase capital requirements was made in response to the collapse of three mid-sized banks in 2023: Silicon Valley Bank, Signature Bank, and First Republic Bank.
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