The Federal Reserve is preparing to raise the asset thresholds that trigger stricter regulation for large banks, a move designed to adjust requirements for inflation and economic growth. The central bank is expected to propose these changes later this year, potentially relieving some lenders from costly compliance burdens and encouraging industry consolidation. Under current rules established in 2019, regulatory scrutiny intensifies when bank assets reach $100 billion, with further tightening at $250 billion and $700 billion. Industry participants argue these fixed thresholds have failed to keep pace with economic developments, subjecting banks to stringent balance-sheet stress tests, liquidity, and capital rules that exceed their actual risk profiles.