U.S. regulators are considering whether to require large regional banks to add to the financial cushions that protect them in times of crisis, a move that is slowing down some pending bank mergers.
The Federal Reserve and the Office of the Comptroller of the Currency are discussing whether regional lenders should hold more long-term debt that can help absorb losses in a downturn, according to people familiar with the matter. Among the issues under consideration, the people said, is how those requirements should apply to the larger regional banks that are now seeking to close big deals.