FDIC Backs Plan on Key Bank Capital Rule Affecting Treasuries

The Federal Deposit Insurance Corp. advanced regulators’ plan to ease a key capital rule that big banks have said limits their ability to act as intermediaries in the $29 trillion Treasuries market.

The FDIC announced on Friday that it had backed the proposed revisions to what’s known as the enhanced supplementary leverage ratio, which requires banks to hold a certain amount of capital relative to their assets.

The agency’s decision followed the Federal Reserve’s vote on Wednesday to propose changes to the rule, which applies to the largest US banks like Bank of America Corp., JPMorgan Chase & ...