Bowman’s GDP-linked proposal would lift bank thresholds by 42%
Recalibration would push five banks out of category III and leave Synchrony and Flagstar below the large-bank line
Updating the asset thresholds that determine how strictly US banks are regulated in line with nominal GDP growth would lift the Federal Reserve’s tailoring benchmarks by 41.8%, Risk Quantum analysis shows. The proposal was floated on January 7 by Fed vice-chair for supervision, Michelle Bowman.
The estimate is based on the increase in nominal US GDP since the central bank last updated the
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