The Federal Reserve is preparing to reduce capital requirements for large US banks, according to a report from the Financial Times.

The move would represent a shift in regulatory policy affecting the nation's biggest financial institutions. Capital requirements mandate that banks hold specific amounts of capital as a buffer against potential losses, serving as a key regulatory tool to ensure financial stability.

Details about the scope and timeline of the proposed changes were not immediately available. The Federal Reserve has not publicly announced the policy adjustment or provided specifics about which institutions would be affected.

Bank capital requirements have been a significant regulatory focus since the 2008 financial crisis, when inadequate capital buffers contributed to widespread bank failures and the broader economic downturn. The requirements are designed to ensure banks can absorb losses while continuing to lend and operate normally.

The potential easing comes as the banking sector faces various economic pressures and as policymakers balance financial stability concerns with the need to support lending and economic growth. Any changes to capital requirements would likely undergo a formal regulatory process before implementation.