As of March 31, bank requirements to meet the so-called supplementary leverage ratio will snap back to pre-pandemic levels. The eased rules were part of the Fed's emergency actions to stabilize the financial system, Treasury market and to boost lending.
"To ease strains in the Treasury market resulting from the COVID-19 pandemic and to promote lending to households and businesses, the Board temporarily modified the SLR last year to exclude U.S. Treasury securities and central bank reserves," the Fed said in a statement. "Since that time, the Treasury market has stabilized."
|JPM||JPMORGAN CHASE & CO.||169.62||+1.85||+1.11%|
|GS||THE GOLDMAN SACHS GROUP, INC.||413.00||+1.86||+0.45%|
|BAC||BANK OF AMERICA CORP.||47.68||+0.61||+1.30%|
|WFC||WELLS FARGO & CO.||51.08||+1.05||+2.10%|
Financial stocks dipped on concerns banks may need to shift capital to meet the requirements. However, the change is also a sign the U.S. economy is stabilizing.
Earlier this week, the policymakers reiterated their commitment to keep rates near zero and also upgraded their economic projections.