The Federal Reserve is planning to raise the asset thresholds that subject large banks to stricter oversight, according to sources familiar with the matter. This move would re-index the thresholds, established in 2019, to account for economic growth and inflation, potentially lifting some lenders out of the most stringent regulatory requirements.
The proposed changes would raise the initial threshold for enhanced rules from $100 billion to around $150 billion in assets and could lift the highest tier from $700 billion to nearly $1 trillion. Such an adjustment would reduce significant compliance costs for a number of banks and could encourage further consolidation within the banking industry.
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