US regulators move to shore up regional banks stability

New debt management requirements

Major US regulators have collaborated on a new set of rules focused on “increasing the resolvability and resiliency” of large and regional banks in the case of failure.

The Federal Deposit Insurance Corporation, Federal Reserve and Office of Comptroller of the Currency have all co-signed new proposals which will require large banks with total assets of $100bn or more to maintain a layer of long-term debt. According to the FDIC, by requiring each bank to maintain a minimum amount of long-term debt to absorb losses the proposal would "increase the options available to resolve such banks in case of failure". FCA begins investigation into bank's 'politically exposed persons' procedures It said: "By reducing the risk that uninsured depositors would fac...