US President Joe Biden on Thursday called on federal regulators to implement a range of reforms to safeguard the banking system, following the collapse of Silicon Valley Bank (SVB) and Signature Bank.
The administration wants regulators to take a range of steps to reinstate safeguards for banks with assets between $100 billion and $250 billion, which include stricter rules for measuring liquidity, and bolstering supervision over financial institutions, according to a report by CNBC.
“Each of these items can be accomplished under existing law,” the White House announced.
The administration is encouraging bank regulators to reinstate liquidity rules under the Dodd-Frank Act that require mid-size banks to hold sufficient liquid assets to cover withdrawals during times of stress.
And while the Trump-era deregulation bill passed in 2018 contained set limits on how much regulators could impose on small banks, it did give them broad powers as to how to impose bank capital requirements for mid-size banks.