The Federal Reserve is developing a plan to raise the asset thresholds that trigger stricter oversight of large banks, according to four people familiar with the matter. The proposal would reindex thresholds for stress tests, liquidity, capital planning and other supervisory requirements to reflect inflation and economic growth. Current triggers sit at $100 billion, $250 billion and $700 billion in assets. The Fed is considering moving the highest threshold closer to $1 trillion and shifting some requirements tied to the lower threshold closer to $150 billion; a nominal-GDP approach could place the highest threshold around $960 billion. Three people said the changes could be proposed later this year. The plan could give lenders including U.S. Bancorp, Capital One, PNC Financial and Truist more room to expand, while allowing Western Alliance, Zions and others to grow beyond $100 billion without facing all current requirements. It could also revive mergers among mid-size banks, although critics warn consolidation could reduce competition and increase systemic risk.