US regionals may get $8 billion capital break in Fed proposal

Under tailored framework, mid- and small banks would also get $77bn liquidity relief

Regulators release regional banks from advanced approaches

Regional banks would be the biggest beneficiaries of the Federal Reserve’s new proposal to assess risk in a more targeted way. With smaller banks included, the capital savings would total an estimated $8 billion.

The new proposal, released on Wednesday, splits banks into four categories.

US global systemically important banks (G-Sibs) land in the first category; banks with more than $700 billion in assets, or more than $75 billion in cross-jurisdictional activity, are in the second. Northern