10:50 AM EDT, 09/10/2024 (MT Newswires) -- The Federal Reserve's top bank regulator said Tuesday he intends to recommend that the central bank re-propose new rules in order to reduce the bank capital requirement under the plan for the biggest banks to an increase of 9% from 19%, confirming a late Monday report by Bloomberg.

The over 50% reduction would apply to global systemically important banks, or G-SIBs, Fed Vice Chair for Supervision Michael Barr said in a speech at the Brookings Institution. For other large banks that are not G-SIBs, the re-proposal of the Basel endgame and G-SIB surcharge rules would result in a 3% to 4% increase in capital requirements over the long run, Barr said, adding that the re-proposal would also increase capital requirements for non-G-SIB firms still subject to the rule by 0.5%.

"These changes reflect the feedback we have received from the public, improve the tiering of the proposal, and better reflect risks," Barr said.

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