(Bloomberg) — US banking regulators are considering asking large regional banks to add to financial cushions to make it easier to wind them down in a future crisis, Dow Jones reported Sunday citing people familiar with the matter.
New rules under consideration include requirements for regional banks to raise long-term debt that can help absorb losses in case of insolvency, extending a slimmed-down version of rules that apply only to the largest US megabanks, according to the report.
The Biden administration and its regulators are concerned that the steady growth of the country’s largest regional banks — including US Bancorp, Truist Financial Corp. and PNC Financial Services Group Inc. — is increasing risks to financial stability, the report said.
US Bancorp and PNC declined to comment to Dow Jones, while a Truist spokesman didn’t respond to the news agency’s request for comment.
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