Fed proposes higher asset thresholds, easing rules for midsize banks

The Federal Reserve is drafting a plan to reindex the asset thresholds that determine when banks must meet heightened capital, liquidity and reporting standards. Under the 2019 framework, banks hit $100 billion, $250 billion and $700 billion in assets face progressively stricter requirements; the Fed aims to move the highest threshold close to $1 trillion and lift the lower trigger to roughly $150 billion, using nominal GDP as a benchmark.

This adjustment would let lenders like U.S. Bancorp, Capital One, PNC Financial and Truist stay below the most stringent regime for longer, while institutions such as Western Alliance, Zions and others could expand beyond $100 billion without the full burden of current rules. A Fed spokesperson declined comment, and three insiders expect the proposal to be presented later this year. The change aligns with broader deregulatory efforts credited to the Trump administration and could influence future bank consolidation trends.