Small banks can now hold less cash in reserve and stay in a simpler regulatory system longer

US banking regulators just lowered the amount of cash small banks must keep on hand. They also extended how long these banks can stay under a simpler set of rules, even if they temporarily fall short of the requirements.

This change makes it easier for small banks to operate without getting caught in complex regulations. It means they can lend out more money and have more flexibility if their finances dip. This is part of a longer trend of easing rules for smaller banks after the 2008 financial crisis.