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S&L; Capital Requirements to Rise: The government...

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S&L; Capital Requirements to Rise: The government announced that minimum capital requirements for most U.S. savings and loans will rise to 3.75% of liabilities at the start of next year from the current 3.44%. The Federal Home Loan Bank Board said the increase was based on current regulations that tie capital standards to an annual measure of the industry’s profitability. The regulations would gradually increase capital requirements to 6%. Those rules are likely to be superseded by legislation under consideration in Congress that would overhaul S&L; regulations and require thrift operators to put more of their own money at risk to stay in business.

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