By Neil Roland ( October 1, 2026, 21:36 GMT | Insight) -- The Federal Reserve’s relaxation of some capital requirements for the eight largest US banks, which took effect in the first quarter of 2026, has already resulted in improvements to the Treasury market, said Michelle Bowman, the Fed’s vice chair for supervision. This capital requirement, called the enhanced supplementary leverage ratio (eSLR), is intended to operate as a backstop to risk-based capital requirements for the Global Systemically Important Banks such as Bank of America and Citigroup. But, Bowman said in a speech, it has become clear that the 2014 eSLR was imposing a “binding constraint” on many large bank dealers.The Federal Reserve’s relaxation of some capital requirements for the eight largest US banks, which took effect in the first quarter of 2026, has already resulted in improvements to the Treasury market, said Michelle Bowman, the Fed’s vice chair for supervision....
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