The Federal Reserve is considering tougher rules for mid-sized banks after the collapse of SVB

The Federal Reserve of the United States (Fed) assesses imposingly stricter rules for medium-sized banks with the aim of avoiding another episode like the recent collapse of Silicon Valley Bank (SVB), financial authorities intervened last Friday. As stated in the newspaper Financial Times According to a source familiar with the situation, the US central bank is reviewing the capital and liquidity requirements it imposes on entities, particularly in the case of those with assets between 100,000 and 250,000 million dollars (93,297 and 233,242 million euros).

In addition, the Fed will also assess the stress tests it conducts each year to examine the ability of US lenders to cope with adverse economic and financial scenarios.

After the collapse of SVB and Signature Bank, The President of the United States, Joe Biden, defended the stability of the country’s banking system this Monday, but expressed the need to strengthen banking regulation, following the relaxation measures implemented by his predecessor, Donald Trump.

“We have to try to make sure it doesn’t happen again,” defended Biden, vowing to ask Congress and bank regulators to tighten regulation of the sector to make it less likely it could happen again.

In 2018, the US Congress repealed parts of the Dodd-Frank Act, in the biggest deregulation effort since the financial crisis of 2007 and 2008, to exempt some banks with up to $250 billion in assets from the Federal Reserve’s stricter supervisory measures, including stress tests . Likewise, the Fed also approved looser regulations for all but the largest banks in 2019.