Bank Groups Eye Changes to Fed’s Relaxed Capital Proposals

Bank groups said that although the Federal Reserve’s eased capital plans are a major improvement over previous versions, the recent proposals still need changes to help avoid risk assessments they say may hinder banks’ ability to boost lending.

Heads of the Washington-based Bank Policy Institute and the Mortgage Bankers Association, among others, testified on Tuesday at a House hearing about the proposals, which are largely viewed as a win for Wall Street.

“The result will be a capital regime that better reflects risk and allows bank capital to be allocated more efficiently,” BPI President Greg Baer said in ...