Tuesday Topic: A Reset of Bank Capital, Liquidity, and Scope

Federal regulators are signaling a broad rethink of the post-2008 regulatory framework, with implications that extend well beyond any single rulemaking. Treasury and OCC leaders are openly questioning whether existing capital, liquidity, and supervisory regimes have entrenched large banks, pushed activity into nonbanks, and limited community bank flexibility without reducing systemic risk. At the same time, regulators are moving to recalibrate capital standards, revisit liquidity rules in coordination with the Fed, and expand banks’ ability to engage in activities that have migrated outside the regulatory perimeter, including digital asset services. 

Do you think these coming revisions will help smaller banks compete with larger banks?