Trump Administration Advances Major Bank Capital Rule Rollback
The TRUMP administration is finalizing plans to weaken the Supplementary Leverage Ratio (SLR), marking the most significant reduction in bank capital requirements since the 2008 financial crisis. The rule, implemented in 2014 as a post-crisis safeguard, mandates top-tier capital reserves against all bank assets—including loans and off-balance-sheet exposures like derivatives.
Federal regulators aim to announce the proposal by summer, accelerating a broader financial deregulation agenda. Large banks and lobbyists have long criticized the SLR for penalizing holdings of low-risk assets such as U.S. Treasuries. The move could reshape liquidity dynamics for institutional investors, including cryptocurrency market makers who rely on traditional banking channels for fiat ramps.
