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Regulators act to require stronger bank capital

WASHINGTON (AP) — Regulators are acting to require U.S. banks to build a sturdier financial base to lessen the risk that they could collapse and cause a global meltdown.

The eight biggest U.S. banks will have to meet stricter measures for holding capital under a rule being adopted by regulators Tuesday. The Federal Reserve, the Federal Deposit Insurance Corp. and a Treasury Department agency are voting to require those banks to raise their minimum ratio of capital to loans from 3 percent to 5 percent.

The rule won’t take effect until 2018. The affected banks include Citigroup, Bank of America and JPMorgan Chase.

The regulators also are proposing to increase the amount and quality of capital that all U.S. banks must hold to cushion against potential losses.