Change in banking rules means banks can invest in venture capital funds

RESEARCH TRIANGLE PARK – A change in rules regulating banks could mean more capital for venture capital funds.

“US regulators have finalized a rule change that will allow large banks to invest in venture capital funds, altering the enforcement of an Obama-era regulation meant to curb risky investments following the 2008 global financial crisis,” VC and private equity news site PitchBook reports.

“The amendment means that qualified VC funds, credit funds and family wealth management vehicles are no longer prohibited under the so-called Volcker rule. Large banks including Goldman Sachs and Credit Suisse, as well as the National Venture Capital Association, supported the change on the grounds that VC-backed startups are important drivers of economic growth and job creation.”

Read more at PitchBook.