Call for Reform: Rethinking Financial Regulations in the U.S.

U.S. Treasury Secretary Scott Bessent called for comprehensive reforms of the country's outdated financial regulatory framework. Speaking at a Federal Reserve conference, Bessent criticized excessive capitalization requirements, suggesting they hinder growth and push lending to non-bank sectors.

Bessent highlighted the need for long-term reforms focused on innovation and resilience. The Treasury Department, he said, plans to actively lead reform initiatives, challenging existing policy inertia and seeking to streamline regulatory approaches.

Bessent further recommended the abandonment of a proposed dual capital requirement structure, as it failed to consider modern capital reform needs. He also proposed regulatory relief for both large and small banks, advocating for financial policies that prioritize growth and stability.

(With inputs from agencies.)