Fed may impose higher capital requirements on banks

The Federal Reserve may impose a more stringent leverage ratio on banks with the aim of reigning in their risk appetite, reports the Financial Times.

Read: U.S. banks back European rivals in fight against Fed

“The move is being considered amid growing scepticism about the Basel III capital accords, which impose higher capital requirements on banks around the world but allow them to vary the amount depending on the riskiness of individual assets. Officials are concerned that some banks are gaming the system,” says the report.

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Also read:

Fed rejects capital plans of JPMorgan, Goldman

Canadian banks need reforms to stay strong: PwC

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The staff of Advisor.ca have been covering news for financial advisors since 1998.