Bank of America, U.S. Bancorp, and Truist Financial would lead gains from proposed liquidity regulation changes. Citrini Research identified these firms as top beneficiaries of reforms advocated by Treasury Secretary Scott Bessent.
The proposal allows banks to count Federal Reserve discount window borrowing capacity toward liquidity coverage requirements. This reform could unlock hundreds of billions of dollars in new lending capacity across the banking system.
Institutions would likely use this capital to expand lending and purchase additional Treasurys. These actions could significantly increase bank profitability and strengthen their roles within the financial system.