Release 2 trillion USD! The United States plans to lower the bank "Supplementary Leverage Ratio (SLR)" restrictions since the 2008 financial crisis.

The Financial Times reported that U.S. regulators are planning to cut the "supplementary leverage ratio" in the coming months, a reform that is supported by banks but has also raised concerns among experts about economic stability. (Synopsis: Heavy "U.S. Office of the Comptroller of the Currency: Banks are free to trade crypto assets and custody without prior approval) (Background supplement: The US FDIC released a loosening signal: Will banks be friendly to crypto institutions? According to the Financial Times, citing people familiar with the matter, the US authorities are preparing to announce the largest reduction in bank capital requirements in more than a decade: regulators plan to reduce the "Supplementary Leverage Ratio" (SLR) in the coming months, which will be the latest step in the Trump administration's push for financial deregulation. Banking sector welcomes reforms: calls for easing restrictions to boost market liquidity It is understood that the "supplementary leverage ratio" stipulates that large banks must hold a certain proportion of high-quality capital for their total leveraged exposure, including loans and off-balance sheet items (such as derivatives). The system was established in 2014 as part of a series of major reforms following the 2008-2009 financial crisis to strengthen the resilience of financial institutions to systemic risk. However, the rule has been criticized by banks for years. They argue that even holding low-risk assets such as U.S. Treasuries is limited by SLR rules, preventing banks from effectively participating in the $29 trillion government bond market and reducing their ability to lend. Greg Baer, chief executive of the Bank Policy Institute, said: "Punishing banks for holding low-risk assets like Treasuries weakens their ability to provide liquidity in times of market stress, when banks are most needed to play their role." Regulators should act now, not wait for the next crisis." Deregulation amid market unease, causing some economists to worry However, not everyone has a positive attitude towards this deregulation measure. Especially in the current market turmoil and the uncertainty of the Trump administration's policies, some economists believe that now is not the right time to cut bank capital requirements. For example, Nicolas Véron, a senior fellow at the Peterson Institute for International Economics, said: "Given the current global situation, the risks facing U.S. banks, including the role of the dollar and the direction of the economy, do not seem like an opportunity to relax capital standards." But despite the skepticism, the U.S. government's push for reform appears to be quite firm. Treasury Secretary Scott Bessent said last week that the reform was a "high priority" for major regulators such as the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. At the same time, Fed Chairman Jay Powell also pointed out in February this year: "We need to improve the structure of the treasury bond market, and one of the solutions is to lower the standard of supplementary leverage ratio, which should be our approach." Free up about $2 trillion in balance sheet capacity At present, the so-called "Tier 1 capital" that the eight largest U.S. banks must hold, that is, common equity interests, retained earnings and other capital that preferentially absorb losses, must reach 5% of their total leverage exposure. In contrast, the largest banks in Europe, China, Canada and Japan have significantly lower standards, most of which need to maintain a capital level of 3.5% to 4.25%. This discrepancy has led U.S. banks to continue to call for SLR requirements to be aligned with international standards. Regulators are also considering whether it is possible to reintroduce measures that exclude low-risk assets, such as government bonds and central bank deposits, from the calculation of leverage ratios (a policy that was briefly implemented for a year during the pandemic). According to the latest estimates by research firm Autonomy, the reintroduction of the exemption would free up about $2 trillion in balance sheet capacity, giving large banks more resources to market operations and lending. However, the Financial Times also pointed out that if the United States implements exemptions, it may become an international regulatory outlier, which will cause concern in Europe. European regulators fear that the move will prompt local banks to demand a mutatis mutandis and similar capital forgiveness for holdings of eurozone sovereign and gilts, weakening overall financial stability. Related reports The Office of the Comptroller of the Currency relaxes regulations! Banks can custody crypto assets and stablecoin transactions without prior approval Bank of America CEO: Will launch stablecoins linked to customer dollar deposits, waiting for regulatory bills to land The new director of the U.S. Office of the Comptroller of the Currency (OCC) is also crypto-friendly, and it is rumored that he will revoke the ban on banks participating in virtual currencies (release $2 trillion!) The United States intends to reduce the bank's "supplementary leverage ratio SLR" and relax the restrictions since the financial crisis in '08" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".