TechFlow, June 27 — According to Jinshi Data, Morgan Stanley estimates that the Federal Reserve's plan to ease leverage rules could release $185 billion in capital and unlock nearly $6 trillion in balance sheet capacity.
The Fed previously released a proposal to revise capital requirements for large global banks on relatively low-risk assets, aiming to boost participation in the U.S. Treasury market. The plan passed by a 5-to-2 vote, marking one of the first deregulatory measures expected under Governor Bowman, the Fed’s new vice chair for supervision.
The proposal would reform the so-called "enhanced supplementary leverage ratio," aligning the amount of capital banks must set aside directly with their role in the global financial system.
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