U.S. Banks Lobby Federal Reserve to Ease Capital Requirements as Consultation Concludes

Large U.S. banks formally presented their final arguments to the Federal Reserve on June 18, 2026, seeking modifications to a proposed capital rule. The banks aim to reduce the funds they must set aside to absorb potential losses, as the central bank concludes its extensive regulatory overhaul. This push could significantly impact banks' capital allocation and operational flexibility. The banks' proposals focus on tweaking the Fed's framework, which has been under consultation for an extended period. Lower capital requirements would potentially free up billions in capital, allowing banks greater flexibility for lending, investments, or shareholder distributions. The Federal Reserve is now in the final stages of reviewing public comments on the proposed changes.