The administration of U.S. President Joe Biden is proposing tougher rules for mid-sized American banks following the recent crisis that saw the failure of two regional lenders.
The White House has called for federal banking agencies and the U.S. Treasury Department to enact a series of changes to tighten banking rules.
The proposed changes include reinstating rules for banks with assets between $100 billion U.S. and $250 billion U.S. that include liquidity requirements, enhanced stress tests, and procedures for winding down midsized bank.
The White House also called for annual stress tests for midsized banks; shortening the time to apply stress tests once banks reach $100 billion U.S. in assets; and strengthening supervisory tools to ensure banks can withstand rising interest rates.
The proposals come after the failures of two regional lenders, Silicon Valley Bank and Signature Bank, that shook confidence in the U.S. financial sector.
The White House said that it will be up to regulators to enact its proposed changes but that the administration had spoken with them in preparing its proposals.
Spokespeople for President Biden said none of the measures proposed by the administration require Congressional approval, making their passage into law more likely.