WASHINGTON (Reuters) – U.S. banking regulators announced on Friday they were temporarily easing a leverage requirement for depository institutions by allowing banks to ignore certain safer assets and continue lending.
The new rule gives banks the option of excluding holdings in Treasury securities of deposits held at the Federal Reserve from calculating their “supplemental leverage ratio,” which directs larger banks to hold more capital against their assets. The rule builds on similar relief provided to bank holding companies by the Federal Reserve in April during the new coronavirus outbreak.
(Reporting by Pete Schroeder; editing by Grant McCool)
