Fed to Unveil Relaxed Bank Capital Proposal in Coming Week (2)

US lenders will get relaxed capital proposals from regulators in the coming week, the Federal Reserve’s top bank cop said Thursday, in a move applauded by the banking industry.

“These changes to the capital framework eliminate overlapping requirements, right-size calibrations to match actual risk, and comprehensively address long-standing gaps in our prudential framework,” Fed Vice Chair for Supervision Michelle Bowman said at a Cato Institute event.

Bowman said regulators expect the part of the package tied to Basel III to result in a small increase in capital requirements for Wall Street lenders, while proposed changes to the global ...