Fed Capital Rules Aid Small Business Credit

Federal Reserve Vice Chair Michelle Bowman stated that proposed changes to capital rules will bolster small business credit access. These adjustments, put forth by federal banking regulators, aim to encourage lending to small businesses by modifying risk-weighting for loans. Bowman emphasized that the updated regulations are designed to support the growth and stability of small businesses, which are crucial components of the U.S. economy. The initiative reflects a broader regulatory effort to ensure financial institutions can effectively serve this vital sector.