New quarterly data from the biggest U.S. banks suggest that some will need to back away from short-term lending markets by year-end to avoid triggering requirements that they hold more capital.
The data, posted on Friday by the Federal Reserve, showed four of the six biggest U.S. lenders were above or close to thresholds that would increase their capital surcharges.
An easy way to get the scores down would be doing less lending through overnight repurchase agreements and foreign exchange swaps, said analysts who track the filings.
The full article is available at https://in.reuters.com/article/us-usa-banks-repo-swaps/u-s-banks-cram-for-fed-risk-test-with-ripple-effects-in-repo-idINKBN1XW2AS