Quarles says Fed looking to lessen regulation on large banks

The Federal Reserve is looking to loosen regulation on big banks that are not on the list of global systemically important banks, according to testimony by Vice Chairman for Supervision Randal Quarles. Quarles, who will testify before the Senate Banking Committee on Tuesday, said the Fed is reviewing requirements for firms with more than $250 billion in total assets but below the G-SIB threshold. "Currently, some aspects of our regulatory regime–liquidity regulation, for example–treat banks with more than $250 billion in assets with the same stringency as G-SIBs. I can see reason to apply a clear differentiation," he said. The Fed is putting its "highest priority" on issuing a proposed rule on tailoring enhanced prudential standards for banking firms with assets between $100 billion and $250 billion, Quarles said. Topics covered by such a proposal could include capital and liquidity rules, and resolution planning requirements for the less complex and interconnected of these firms, he said.

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