Bessent calls for deeper bank regulatory reforms, scrapping dual capital requirements

WASHINGTON, July 21 (Reuters) - U.S. Treasury Secretary Scott Bessent on Monday called for deeper reforms of an antiquated financial regulatory system and said regulators should consider scrapping a dual capital requirement structure for banks proposed during the Biden administration.

Speaking at the start of a Federal Reserve regulatory conference, Bessent said excessive capitalization requirements were imposing unnecessary burdens on financial institutions, reducing lending, hurting growth and distorting markets by driving lending to the non-bank sector.

"We need deeper reforms rooted in a long-term blueprint for innovation, financial stability, and resilient growth," Bessent said in prepared remarks.