Regulators Prepare to Increase Scrutiny on Big Banks

President Biden's regulators are pushing for higher capital requirements for banks to reduce their reliance on debt and deposits and provide a greater cushion against setbacks. However, the banking industry is fiercely opposing the move, arguing that they have already strengthened their defenses since the 2008 financial crisis. The proposal is based on international standards agreed to at the Basel Committee for Banking Supervision, which have been branded as the "Basel III endgame." The rules are not expected to take effect for years, but banks are concerned that they will hinder lending and impede growth at an especially fragile time for the economy.