US regulators are set to release a plan to encourage small banks to lend more by easing a set of capital requirements, according to people familiar with the matter.
The proposal, which has been under review at the White House, would relax what’s known as the community bank leverage ratio to 8% — the lowest amount allowed by law — from 9% currently. Lenders can choose to comply with that standard rather than using risk-based measures tied to their portfolios.
Vice Chair for Supervision at the US Federal Reserve Michelle Bowman during the Federal Reserve Board Community Bank Conference in Washington.
Photographer: Eric Lee/Bloomberg
The measure would be proposed by the
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