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The Trump administration is reportedly preparing to reduce capital requirements for US banks by adjusting the supplementary leverage ratio (SLR). While proponents argue this will boost market liquidity, critics warn it could heighten financial risks.
- The Trump administration plans to reduce the supplementary leverage ratio (SLR) for US banks, potentially aligning it closer to the global Basel III minimum of 3%.
- Federal Reserve Chair Jerome Powell supports the move, arguing it would strengthen the Treasury market, while critics warn it could increase systemic risks.
- Current US rules mandate a 5% SLR for major banks, higher than many other developed nations, with some jurisdictions enforcing standards up to 4.25%.
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