Regional banks face another hit as regulators force them to raise debt levels
Publishing timestamp: 2023-08-29 15:30:11
Summary
U.S. regulators have announced plans to require regional banks with at least $100 billion in assets to issue debt and strengthen their living wills. The new requirements aim to protect the public in the event of bank failures. Impacted lenders will need to maintain long-term debt levels equal to 3.5% of average total assets or 6% of risk-weighted assets. The changes come in response to the regional banking crisis earlier this year and will create moderately higher funding costs for regional banks. However, banks will have three years to comply with the new rules, and many already hold acceptable forms of debt.
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Keywords: banks, investment strategy, fifth third bancorp, regions financial corp, breaking news: investing, morgan stanley, business news, m&t bank corp, breakingnewsglobal, northern trust corp, breaking news: markets, citizens financial group inc,
Source: https://www.cnbc.com/2023/08/29/regional-banks-to-be-forced-to-raise-debt-in-case-of-failure.html