Two Impacts From March’s Bank Failures: Incoming Regulations and Small Businesses Taking a Hit

1/ Tighter regulations could be coming (back) for mid-sized banks. Yesterday, the Biden administration proposed tougher regulations on banks with $100-250B in assets. What’s in the proposal? More regular stress tests (one every other year → yearly) analyzing whether banks can handle extreme risks or worstcase scenarios. Stricter liquidity standards — requiring banks to hold…

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