The Globe and Mail reports in its Friday edition that U.S. federal banking regulators proposed reducing capital requirements for large and regional banks, aiming to reduce red tape and boost lending. A New York Times dispatch to The Globe reports that critics, however, warn this could heighten systemic risk. The changes would decrease the required capital reserves for banks by an average of 4.8 per cent for larger banks and up to 7.8 per cent for smaller banks. The proposals aim to change post-financial crisis rules established after the 2007 Great Recession. Since then, large banks have more than doubled their capital levels, increasing buffers by $1-trillion (U.S.) to withstand economic shocks. Banks have long sought to ease these requirements. Regulators now believe it is safe to make tweaks. Federal Reserve chair Jerome Powell said, "It has been almost two decades since the crisis, and over the years we have come to understand that certain elements of the post crisis regulatory regime may warrant recalibration." The board voted 6-1 in favour of the proposed overhauls. The package of suggested rules will be posted on the Federal Register and will be open for public comment for 90 days before they are officially okayed.