US banking turmoil may cause tighter regulations for large banks: Fitch

By Ovunc Kutlu

ISTANBUL (AA) - The recent turmoil in the US banking industry may cause tighter regulations for large banks in the nation, Fitch Ratings said Thursday in a statement.

"The recent failures of Silicon Valley Bank and Signature Bank have ignited concerns regarding the prudential regulatory regime, highlighting the importance of interest rate-risk management practices during an era of rising policy rates," the rating agency said in a statement.

It noted that US regulators may tighten the regulatory regime for large regional US banks with more than $100 billion in assets, in order to align regulatory requirements more closely with European and Asia-Pacific frameworks.

The sudden collapse of Silicon Valley Bank and Signature Bank, in addition to financial difficulties surrounding Silvergate Bank and First Republic Bank, in recent weeks ignited turmoil in the banking sector of the world's biggest economy.