7/11, 5:17 PM (Source: TeleTrader)
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Powell against lowering capital requirements for banks

United States Federal Reserve Chair Jerome Powell said that he believes the level of capital in the banking system is "about right" and that it should not be lowered, especially not for the largest financial institutions in the country.

Powell added that bank stress tests should evolve over time, but said that lowering the amount of capital banks need to have is not right as the "overall strength and power" of the economy need to be preserved.

Speaking before the Senate Banking, Housing and Urban Affairs Committee, the Fed chair noted that the level of capital required of the largest institutions is "high" but stressed that it is appropriate to be so since the last financial crisis took place only ten years ago.

Breaking the News / VP