The Financial Post reports in its Tuesday edition that U.S. authorities are set to announce significant cuts to banks' capital requirements. A Financial Times dispatch to the Post reports that regulators plan to reduce the supplementary leverage ratio in the coming months. This rule mandates large banks to maintain a specific amount of high-quality capital against their total leverage, including loans and derivatives, and was established in 2014 after the 2008-09 financial crisis. Bank lobbyists argue the rule penalizes lenders for holding low-risk assets like U.S. Treasuries, limits trading in the $29-trillion government debt market and limits credit extension. Bank Policy Institute head Greg Bair says: "Penalizing banks for holding low-risk assets like Treasuries undermines their ability to support market liquidity during times of stress when it is most needed. Regulators should act now rather than waiting for the next event." Lobbyists anticipate reform proposals from regulators by summer, with potential loosening of capital rules amidst the Trump administration's broad regulatory rollbacks. Critics warn that reducing bank capital requirements is concerning given recent market volatility and policy changes.