According to its new bank supervisor, the US Federal Reserve (Fed) is targeting the capital requirements of financial institutions and is considering a tougher approach.
The central bank is currently looking at its instruments to understand how they support the resilience of the financial system, said Michael Barr on Wednesday in his first public speech since taking office.
There could be rule changes to the annual stress test for banks, the adjusted calculation of the leverage ratio, the so-called Supplementary Leverage Ratio (SLR), and the countercyclical capital buffer.
The SLR is a measure of a bank's ability to cushion losses with equity.
Barr's agenda could lead to a reshuffle at the country's largest financial institutions.
In addition, the US Federal Reserve is aiming for an analysis next year to better assess the long-term financial risks for banks from climate change, he added.
Stricter regulations could also be enacted for large regional banks, which have grown through a series of mergers.
Experts expect Barr to rein in the financial institutions more than his Republican predecessor, Randy Quarles.
Barr was nominated by Democratic President Joe Biden.