WASHINGTON — Regulators want to require eight of the largest U.S. banks to meet a stricter measure of health to reduce the threat they pose to the financial system.
The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency are expected to propose Tuesday that banks increase their ratio of equity to loans and other assets from 3 percent to 5 or 6 percent.
Equity includes money banks receive when they issue stock, as well as profits they have retained.