U.S. Regulators Propose Looser Capital Rules for Big Banks

Officials say simplifying the rules will boost lending and the economy.

Mar. 19, 2026 at 1:52pm

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America's biggest banks will be allowed to hold billions of dollars less in capital on their books under a new proposal, a change officials say will free up their ability to lend and compete with private-credit firms and other rivals.

Why it matters

The proposal represents a major victory for big banks, which had resisted sharply higher capital requirements proposed under the Biden administration. The move aligns with the banking industry's priorities under the second Trump administration.

The details

The proposal introduced by regulators would allow the largest U.S. banks to hold less capital on their balance sheets, a change intended to boost lending and economic activity. Banks had pushed back against stricter capital rules proposed earlier.

  • The proposal was introduced on March 19, 2026.

The players

Biden administration

The previous administration that had proposed stricter capital requirements for big banks.

Trump administration

The current administration that is supporting more lenient capital rules for the largest U.S. banks.

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What’s next

Regulators will finalize the new capital rules in the coming months, which are expected to be approved and implemented.

The takeaway

The proposed changes to capital requirements for big banks reflect a shift in regulatory priorities, favoring economic growth over strict safeguards put in place after the 2008 financial crisis.