Banks Rally as US and Fed Move to Ease Leverage Regulations

The US is considering reforming the Supplementary Leverage Ratio (SLR), a controversial banking regulation designed to bolster financial stability. While relaxing the SLR could boost lending capacity and market liquidity, experts warn that the impact may be limited and the process lengthy due to regulatory and political hurdles. The reform aims to encourage banks to hold more government debt and improve market functioning, but its actual effects remain uncertain.