Fed Attempts to Boost Bank Capital as Lenders Expect Weak Results

Banks Object To New Proposal By Regulators To Increase Risk Cushion, While A Slowdown Is Expected

Federal Reserve Board Vice Chair for Supervision Michael S. Barr speaks during a hearing with the Senate Banking Committee on Capitol Hill in Washington on May 18, 2023. Anna Moneymaker/Getty Images

Federal regulators launched an effort that would force major lenders to set aside billions in more capital to guard against risk this week.

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency agreed on July 27 to put the new proposal out for public feedback.