The FDIC set minimum capital standards for banks.
At the same time, the Federal Deposit Insurance Corp. issued a proposal to require more public disclosure of individual banks’ financial problems. The minimum capital requirement, basically a ratio of shareholders’ equity in the bank versus its outstanding assets, mainly loans, primarily affects a handful of the nation’s largest banks, most of which have been moving toward the new 6% minimum for some time. A spokesman for the American Bankers Assn. said some of the largest so-called money center banks had fallen below 5% capital levels over the past decade but “started getting pressure” from regulators to increase the level.
More to Read
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.