US regulators loosen Volcker Rule for small banks


The Federal Reserve and other US regulators have lightened the regulation of relief to smaller “community” banks under the Volcker rule. But the regulators seem to be resisting political pressure to make similar concessions to larger banks.

The Volcker rule prohibits banks from using customers’ deposits to make certain kinds of investment. Named after the former Fed president Paul Volcker, it is a section of the Dodd-Frank Act and came into effect in 2015.

The change to the rule was announced

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