US plans to relax bank capital regulations and ease restrictions on US bond trading

Odaily Planet Daily News: The Federal Reserve, FDIC, and OCC are considering lowering the Enhanced Supplemental Leverage Ratio (eSLR) for large banks from the current 5% to 3.5% -4.5% to address the constraints of capital rules on trading in the $29 trillion US Treasury market. The proposal is expected to be reviewed by the Federal Reserve on June 25th, or simultaneously solicit public opinions on whether to exclude US bond assets from the calculation. The analysis points out that although the reform intention is to enhance the ability of banks as intermediaries, it also raises concerns about the fragility of the financial system. (Bloomberg)