Four people familiar with the matter said the Federal Reserve is planning to
raise asset-size thresholds that trigger enhanced supervision of large banks.
The change would spare some lenders from costly additional oversight and could
accelerate industry consolidation. Sources said the Fed expects to soon propose
recalibrating the thresholds that determine when banks face balance-sheet stress
tests, liquidity, capital and other stricter rules to reflect inflation and
economic growth; three of the sources said proposals are expected later this
year. Current rules tighten oversight at $100bn in assets and further increase
requirements at $250bn and $700bn. Banks say the thresholds, set in 2019, have
not kept pace with economic growth and have made regulation stricter than the
risks warrant.
