Image: Bank Policy InstituteFed's Bowman Endorses Tailored Capital Rules for U.S. Banks' Trading Activities
Federal Reserve Governor Michelle Bowman supported a proposal strengthening capital requirements for banks' trading desks, calibrated to U.S. capital markets. The rules aim to enhance resilience without stifling market-making activities. This comes amid volatile conditions from geopolitical risks and inflation pressures. Implementation could influence bank profitability and lending in the coming quarters.
bpi.com