The US Treasury is pushing for a major reset in bank liquidity rules, aiming to prevent another Silicon Valley Bank-style collapse. Treasury Secretary Scott Bessent and Deputy Secretary Jonathan McKernan advocate shifting liquidity requirements from market-based assets to pre-positioned collateral, allowing banks to access emergency funding more efficiently. This proposal, part of a broader effort to stabilize the financial system, seeks to reduce panic during crises by normalizing central bank support for solvent institutions.
The move contrasts with post-2008 reforms that prioritized loss allocation over deposit insurance expansion.
Source: Financial Times Companies · Summarized by HeadlinesBriefing