Fed to consider tougher rules for midsize banks after SVB, Signature failures -WSJ

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The Fed is reviewing a set of more stringent regulations related to capital and liquidity requirements, the report said, adding that it may consider measures to beef up annual “stress tests.”

The report comes as policymakers grapple with the fallout from the crisis in Silicon Valley Bank and Signature Bank (NASDAQ:SBNY) and the contagion fears that gripped the banking system.

Regulators were forced to announce relief measures on Sunday, reassuring customers that all the deposits from both the banks would be covered. The Fed also announced a new facility to give banks access to emergency funds, in a bid to calm broader fears in the market.

According to the newspaper, the revised rules could target firms with between $100 billion to $250 billion in assets. Currently, these companies are not subject to some of the most toughest requirements.

The Federal Reserve did not immediately respond to Reuters request for comment.