By Emily Stephenson
WASHINGTON (Reuters) – The eight biggest U.S. banks must boost capital levels by a total of about $68 billion under new rules, U.S. regulators said on Tuesday, prompting industry complaints that less-stringent global standards will give overseas competitors an advantage.
The rules would limit banks’ reliance on debt, part of efforts to prevent another financial crisis. By 2018, banks must rely more on funding sources such as shareholder equity, rather than borrowing money.
Banks’ insured subsidiaries face tougher limits and must boost capital holdings by a total of about $95 billion, regulators said.