Date: 13 October 2025
Source: Financial Times
The US financial sector is on the brink of a major expansion following proposals to relax capital requirements for large banks — potentially unlocking $2.6 trillion in lending capacity. The reforms, being reviewed by the Federal Reserve and Office of the Comptroller of the Currency (OCC), would release up to 14% of Common Equity Tier 1 (CET1) capital, significantly increasing liquidity across the banking system.
Proponents argue that this move could stimulate lending and boost economic growth, particularly in sectors like infrastructure, technology, and energy. However, regulatory analysts and lawmakers have raised concerns about the systemic risks associated with loosening capital buffers so soon after years of tightening oversight under post-crisis reforms such as Dodd-Frank.
For international investors and corporates operating in or with the US, this represents a critical moment to re-evaluate financing strategies, risk exposure, and compliance requirements. Cross-border entities will need to stay alert to how these reforms affect credit availability, deal structures, and the legal frameworks governing international transactions.
