Fed Proposes Liquidity Rule Overhaul, Requiring Extra Bank Reserves Tied to Uninsured Deposits

Federal Reserve Vice Chair Michael Barr proposed new liquidity rules for large banks to guard against future crises like the bank failures in 2023.
Fed Proposes Liquidity Rule Overhaul, Requiring Extra Bank Reserves Tied to Uninsured Deposits
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
Tom Ozimek
Tom Ozimek
Reporter
|Updated:
0:00

Federal Reserve Vice Chair for Supervision Michael Barr proposed significant changes to liquidity regulations for large U.S. banks, aimed at bolstering their resilience against future financial shocks.

While speaking at the U.S. Treasury Market Conference on Sept. 26, Barr outlined several proposed enhancements meant to ensure banks can withstand stress scenarios similar to those witnessed during a series of abrupt bank failures in 2023, which began with the collapse of Silicon Valley Bank.

Tom Ozimek
Tom Ozimek
Reporter
Tom Ozimek is a senior reporter for The Epoch Times. He has a broad background in journalism, deposit insurance, marketing and communications, and adult education.
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