Benzinga
  • last year
US banking regulators unveiled plans to force regional banks with over $100 billion in assets to issue more long-term debt. This new debt requirement aims to protect depositors in case these larger regional banks fail. The debt would act as a layer of capital to absorb losses before uninsured deposits are affected, allowing regulators to seize or resolve a failing bank. Regulators may also update guidance on risks like high uninsured deposit concentrations and potentially change deposit insurance pricing to discourage risky behavior.
Transcript
00:00 It's Benzinga and here's what's on the block.
00:02 US banking regulators unveiled a plan to force regional banks with over $100 billion
00:06 in assets to issue more long-term debt.
00:09 This new debt requirement aims to protect depositors in case these larger regional banks
00:13 fail.
00:14 The debt would act as a layer of capital to absorb losses before uninsured deposits are
00:19 affected which would allow regulators to seize or resolve a failing bank.
00:24 Regulators may also update guidance on risks such as high uninsured deposit concentrations
00:28 and potentially change deposit insurance pricing to discourage risky behaviors.
00:33 For all things money visit Benzinga.com
00:35 [BLANK_AUDIO]

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