Fed's Barr Says We Will Pursue Changes To Regulation, Supervision Over Coming Months; Higher Capital Requirements Coming For Biggest Banks; New Rules Will Mean Biggest Banks Need Extra $2 Of Capital For Every $100 Of Risk-weighted Assets
Portfolio Pulse from Happy Mohamed
The Federal Reserve's Barr announced that changes to regulation and supervision are expected in the coming months. This includes higher capital requirements for the biggest banks, with new rules necessitating an extra $2 of capital for every $100 of risk-weighted assets.
July 10, 2023 | 2:16 pm
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NEGATIVE IMPACT
The SPDR S&P Bank ETF (KBE) could be impacted by the Federal Reserve's upcoming regulatory changes and higher capital requirements for big banks.
KBE, which tracks the performance of the banking sector, could be negatively impacted as higher capital requirements could potentially reduce profitability for banks, leading to a potential decrease in the ETF's value.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P Regional Banking ETF (KRE) could be affected by the Federal Reserve's upcoming regulatory changes and higher capital requirements for big banks.
KRE, which tracks the performance of the regional banking sector, could be negatively impacted as higher capital requirements could potentially reduce profitability for banks, leading to a potential decrease in the ETF's value.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
The SPDR S&P 500 ETF (SPY) could see some impact from the Federal Reserve's upcoming regulatory changes and higher capital requirements for big banks, given its exposure to the financial sector.
SPY, which tracks the S&P 500 index and has exposure to the financial sector, could be negatively impacted as higher capital requirements could potentially reduce profitability for banks, leading to a potential decrease in the ETF's value.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
The Financial Select Sector SPDR Fund (XLF) could be impacted by the Federal Reserve's upcoming regulatory changes and higher capital requirements for big banks.
XLF, which tracks the performance of the financial sector, could be negatively impacted as higher capital requirements could potentially reduce profitability for banks, leading to a potential decrease in the ETF's value.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90