The Biden administration is calling on regulators to tighten rules for mid-sized banks, the latest response to the failure of a pair of regional lenders.
Changes pitched include:
- Reinstating rules for banks with assets between $100 billion and $250 billion — a category collapsed Silicon Valley Bank fell into — including liquidity requirements;
- Annual stress tests for banks in that range, instead of every two years;
- Shortening the time to apply stress tests once banks reach $100 billion in assets;
- Strengthening supervisory tools to ensure banks can withstand rising interest rates; and
- “Living wills” that show how banks that size ...