US regulators implement cost-reducing rules for bank failures, impacting regional banks and liquidity requirements
US financial regulators have approved new rules aimed at reducing the cost of bank failures. The rules include a requirement for banks with at least $100 billion in assets to issue around $70 billion in long-term debt to absorb losses in case of insolvency. This is intended to prevent banks from tapping into the FDIC's Deposit Insurance Fund (DIF). The FDIC also proposed a rule that would force banks to disclose more details on how they could be managed if they were to fail. Critics argue that these rules could harm banks and restrict financing to small businesses.