Martin Gruenberg, Chairman of the US Federal Deposit Insurance Corporation (FDIC), said bank regulators are considering applying stricter capital rules to banks with more than $100 billion in assets.
“Strong, high-quality capital is essential for increasing resilience in the banking system during economic cycles and times of economic stress,” Gruenberg told the Washington-based Peterson Institute for International Economics. made its assessment.
Pointing out that the loss of market confidence that began with the bankruptcy of Silicon Valley Bank (SVB) was caused by questions about capital, Gruenberg said that federal banking institutions should carefully review applicable precautionary requirements, including banks’ capital, liquidity and loss-covering resources.
Gruenberg stated that midsize US banks with at least $100 billion in assets will face new rules to set aside more capital in the event of unexpected stress, and that community banks will be exempted from such rules.
Noting that federal agencies will propose new capital rules in the near future, Gruenberg added that it is unlikely that the rules will come into effect before the middle of next year.
The bankruptcy of SVB in the USA in March was one of the biggest bankruptcies after the 2008 global financial crisis, and New York-based Signature Bank also went bankrupt after SVB.
At the beginning of May, First Republic Bank became the third bank in the US to go bankrupt within 2 months after the sharp rise in interest rates.
In order to prevent the reoccurrence of bank bankruptcies, policy makers made statements that tightening the supervision and capital requirements of banks could be made.