The US Federal Reserve has proposed easing the enhanced supplementary leverage ratio (ESLR) for large banks, a key capital requirement established after the 2008 financial crisis. The plan aims to reduce the aggregate Tier 1 capital requirements for global systemically important banks (GSIBs) by 1.4%, equivalent to $13 billion, and cut subsidiary capital requirements by 27%, or $213 billion. This adjustment is intended to help major banks increase their capacity to hold more US Treasuries and facilitate trading in the $29 trillion Treasury market. The proposal ties the ESLR buffer to the GSIB surcharge. Federal Reserve Chair Jerome Powell described the review as "prudent," but the plan faces opposition from at least two Fed officials, including Michael Barr and Lorie Logan Kugler, who warn it could weaken financial safeguards. The Fed has opened a 60-day public comment period to gather feedback on the proposal.