Marsh McLennan Lobbies U.S. Regulators for AI Loan Capital Relief

Marsh McLennan is lobbying United States regulators to lower the capital requirements banks must maintain for loans protected by credit risk insurance. The insurance broker argues that U.S. banks lack the regulatory capital relief available to European lenders, which forces them to seek alternative hedging tools for AI-related financing.

This push for regulatory change comes as demand for AI data center financing accelerates. Barclays is currently seeking insurance on more than $10 billion in data-center debt, while HSBC is examining a similar arrangement. However, some lenders are becoming more selective; JPMorgan Chase and Goldman Sachs recently withdrew from fully underwriting a $5 billion loan package for Volta Infrastructure Holdings.

Federal Reserve Vice Chair for Supervision Michelle Bowman indicated that the central bank expects to finalize new capital rules within weeks. These updates may include proposals to trim capital surcharges for the largest U.S. lenders. Azi Larsen, a managing director at Marsh, noted that banks still see value in using credit risk insurance even if they do not ultimately receive capital relief.