A new plan from the U.S. central bank would change the criteria for how regional lenders are supervised to provide them more room to grow. The Federal Reserve is drafting a proposal to increase the assets that trigger stricter oversight, potentially raising the highest threshold from $700 billion to approximately $960 billion and moving the entry level from $100 billion to $150 billion, Reuters reports.

These adjustments, the first of their kind since 2019, account for inflation and economic expansion to reduce regulatory costs for banks such as US Bancorp, Capital One, PNC, and Truist. By relaxing capital, liquidity, and reporting requirements, the shift could facilitate a new wave of mergers and acquisitions among regional lenders.