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The Federal Reserve has recently announced a set of proposed rules that aim to ease regulations on smaller banks. Below are some key details as reported by CNBC.

  • Under the rules, the banks would be divided into four categories, with those having between $100 billion and $250 billion in assets seeing the greatest relief.
  • The largest banks would face essentially the same regulations under the Dodd-Frank reforms, though the frequency of stress tests could be reduced.

Fed Chairman Jerome Powell:

The proposals before us would prescribe materially less stringent requirements on firms with less risk, while maintaining the most stringent requirements for firms that pose the greatest risks to the financial system and our economy.

The proposals seek to maintain a middle ground for those firms that are clearly in the middle.