MNI BRIEF: Biden Calls For Tougher Mid-Size Bank Regulations

U.S. President Joe Biden on Thursday urged regulators to consider tougher regulations and supervision of banks with assets between USD100 billion and USD250 billion.

Biden called for liquidity requirements and enhanced liquidity stress testing, annual supervisory capital stress tests, comprehensive resolution plans, a reduction in transition periods to growing banks that are projected to exceed the USD100 billion threshold, and expanding long-term debt requirements to a broader range of banks. Each of the reforms can be accomplished under existing law, according to a White House fact sheet.

Top officials from the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corporation told Congress earlier this week they would support strengthening banking regulations, including for firms with assets over USD100 billion. Biden also called for action to ensure that the costs of replenishing the Deposit Insurance Fund after the recent bank failures are not borne by community banks.