Major banks in the United States and the United Kingdom could gain access to roughly $1.3 trillion in additional balance sheet expansion opportunities as regulatory pressure eases, according to analysis cited by the Financial Times.
The report suggests that looser capital requirements and deregulation measures are allowing large US and UK banks to deploy more capital, expand lending activity, and improve profitability.
In contrast, banks across the European Union and Switzerland are facing tighter capital rules, potentially limiting balance sheet growth and reducing competitiveness against American and British financial institutions.
Analysts say the divergence in regulation could reshape global banking dynamics over the coming years, especially as higher interest rates and economic uncertainty continue pressuring the financial sector.