U.S. banking regulators released a proposal Thursday that would ease capital rules in a move supporters of the new approach argue could lead to increased lending into the economy.
The proposal marks a sea change in the government’s approach to managing financial risk that began after big banks received government bailouts during the 2008 financial crisis. Bank capital is meant to serve as a cushion that can help financial institutions weather big losses. After the crisis, bank regulators jacked up those capital requirements.
