Capital requirements

The senior central bank official signaled interest in deploying the countercyclical capital tool for the first time as corporate bond risks build.

The proposed 9% ratio for institutions with less than $10 billion of assets is designed to create a simpler capital regime for small banks.

Federal Reserve Vice Chairman for Banking Supervision Randal Quarles is expected to succeed Bank of England Governor Mark Carney as chairman of the Financial Stability Board, a key global financial regulator, according to two people familiar with the matter.

The agency’s flawed methodology for determining interest rate caps on certain accounts poses risks for banks offering free, low-deposit checking and the financial system more broadly.

The banking agencies have proposed weakening several liquidity, capital and stress test requirements without considering the cumulative effect of the many changes being undertaken.

The revised blueprint by Moelis & Co. LLC incorporates a pending regulatory capital plan for the mortgage giants.

“We have actually discouraged banks from innovating,” FDIC Chairman Jelena McWilliams said in announcing a move that other agencies have made.

The largest U.S. bank's strong third quarter did not insulate its leaders from being pressed about the downside of pricey investments in technology, whether capital rules make commercial lending growth hard for big banks to achieve, and whether another economic downturn is edging closer.

A proposal to ease the leverage ratio for the country’s largest institutions raises questions about whether safety and soundness remain the top priority for the banking agencies.

Financial regulators sought to walk a fine line Tuesday between reassuring Republican senators that they are quickly implementing regulatory relief and defending themselves against Democratic criticism that they are going too fast.