U.S. bank executives warned on Friday that looming higher capital requirements would raise prices for financial products and push activity into less regulated sectors as regulators weigh new rules to cushion against any potential losses.
Federal banking regulators are expected to introduce proposals in the coming weeks requiring banks to keep more cash on hand to ensure the financial system remains stable. Federal Reserve Vice Chair for Supervision Michael Barr said this month that large firms need to hold more in reserve to guard against unknown risks.
Read More : US Banks Caution Stricter Capital Rules Could Lead to Price Increases