The government will adopt a rule June 1 governing bank investments, though compliance will not become mandatory until July, a federal regulator said Sunday.

The rule will require banks to evaluate whether securities purchases increase the overall riskiness of their investment portfolios. It will replace a rule that only requires a review of individual securities without regard to their overall effect on a bank's investment holdings.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.