June 5 (Reuters) - U.S. regulators are preparing to tighten rules for large banks, which could raise their capital requirements by 20% on average, the Wall Street Journal reported on Monday, to boost the financial system's resilience after a spate of midsize bank failures this year.
Regulators are on track to propose the changes as early as this month, the WSJ reported, citing people familiar with the matter.
Fed Vice Chair for Supervision Michael Barr said the central bank was "carefully considering" rule changes for larger regional banks.
The WSJ said that the precise amount of capital requirements will depend on the bank's business, with U.S. megabanks with big trading businesses expected to face the largest increases.
Banks such as Morgan Stanley (MS.N) and credit card giant American Express (AXP.N) that are heavily dependent on fee income, such as from investment banking or wealth management, could also face large capital increases, the WSJ said.
Persons:
Michael Barr, Banks, Morgan Stanley, Baranjot Kaur, Savio D'Souza
Organizations:
Wall Street, Regulators, WSJ, U.S, U.S . Federal, Congress, American, American Express, Reuters, Thomson
Locations:
U.S, U.S ., Bengaluru