The Federal Reserve is preparing a proposal to raise the asset-based thresholds that determine how stringently big U.S. banks are supervised, a plan that could come by year's end, Reuters reported Friday.
Such a plan was expected by industry analysts and bankers whose lobbyists have long urged regulators to rework the levels that trigger stricter oversight of large lenders.
Advocates for tighter bank regulation warn that raising those thresholds could mean fewer banks are held to rigorous standards of supervision. Industry associations say modern asset thresholds are largely outdated because they don't account for economic growth.
A spokesperson for the Fed declined to comment to Reuters, which cited anonymous sources. The Fed didn't immediately provide a comment when reached by Barron's on Friday.
The banking industry would score another win under such a proposal. Across the three primary federal bank regulators-the Fed, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corp.-top officials appointed by President Donald Trump have been receptive to the industry's wishes to loosen supervision.
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