29 August 2023
U.S. regulators unveil plans for regional banks to issue debt and enhance living wills, aiming to protect against failures. Banks with over $100 billion in assets must hold long-term debt for absorbing losses during government seizures. These measures stem from the regional banking crisis earlier this year. New requirements are expected to increase funding costs, potentially impacting earnings and credit ratings. The proposal reflects a response to sudden collapses and emerging risks in the banking system.