JPMorgan Chase Expects Fed's Easing of Leverage Ratio Requirement to Release $185 Billion Capital

BlockBeats News, June 27th, Morgan Stanley estimated that the Federal Reserve's plan to relax leverage rules could release $185 billion in capital and unlock nearly $60 trillion in balance sheet capacity.

The Federal Reserve previously announced a proposal to revise the capital requirements for large global banks for relatively low-risk assets to boost participation in the U.S. Treasury market. The plan was approved by the Federal Reserve in a 5-2 vote and is the first set of deregulatory measures that may be introduced under the leadership of the new Vice Chair for Supervision at the Federal Reserve, Bowman.

The proposal will reform the so-called "enhanced supplementary leverage ratio," linking the amount of capital banks must set aside directly to their role in the global financial system. (Jinse)