U.S. Treasury Secretary: SLR rules for the banking industry are expected to be lifted this summer.

GateUser-6433627c · 2025-05-24T01:14:26+00:00

U.S. Treasury Secretary Becerra stated that regulators may eliminate the SLR rule for the banking sector this summer, lifting long-standing restrictions on banks' transactions of U.S. Treasury bonds. This move would lead to a decrease in U.S. Treasury yields by several basis points. Existing regulations require banks to maintain a certain capital reserve when trading U.S. Treasuries. Becerra believes that the results of the elimination may be seen in the summer.

GateUser-6433627c

2025-05-24 01:14:26

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[U.S. Treasury Secretary: SLR rules for banks are expected to be lifted this summer] U.S. Treasury Secretary Bessant said that regulators may remove a rule that has long restricted banks’ U.S. Treasury transactions this summer. Bson said it was very close to taking action on the provisions (SLR) supplemental leverage. He noted that the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation, (FDIC) three major banking regulators are tackling the problem, and “I think we may see results in the summer.” The removal of the existing SLR rule, which requires banks to retain capital when trading U.S. Treasuries, could bring Treasury yields down by tens of basis points, according to Bassen.

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