Biggest Banks Face 19% Boost in Capital Mandates in US Plan (3)

US regulators unveiled plans to impose even tighter capital rules on big banks, setting up a battle with the industry over whether the push for financial stability will make the country’s lenders less competitive.

The measures released Thursday by the Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency would force lenders to thicken their cushions to absorb unexpected losses. Banks with at least $100 billion in assets would have to boost the amount of capital set aside by an estimated 16%. The eight largest banks face about a 19% increase, with lenders ...