The United States is confronting its most serious pandemic challenge ever.

The longer it lasts and the more severe it becomes, the more likely that the health of financial institutions and their ability to support the economy will suffer as well. If that happens, it could detonate a string of risks already embedded in the system that could ripen into a severe financial crisis marked by shrinking lines of credit and liquidity constraints.

It is time to start thinking about possible antidotes. One such antidote might include releasing financial institutions from at least some of the blizzard of federal and state rules and ratios they’re subject to so that the impact of the coronavirus does not become a longer and more expensive financial event for the American people.

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