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BRIEFLY

October 06, 1987

The Federal Home Loan Bank Board has proposed a rule that would give savings and loan regulators greater latitude in setting minimum capital requirements for individual savings and loan firms. According to a bank board release, "the proposal would allow the establishment of minimum capital levels for federally insured thrifts on a case-by-case basis." The rule effectively means that regulators may demand that riskier institutions have a higher level of capital than non-risky institutions. Critics of the rule fear that it gives regulators too much power. Regulators recently toughened standards for capital, raising the minimum level for savings and loans from 3% to 6% of liabilities.

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