FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis/File Photo

WASHINGTON (Reuters) – The U.S. Federal Reserve on Monday proposed a new regulatory regime for foreign banks operating in the U.S. that could make life easier for some banks, while tightening up rules for more risky foreign firms.

The proposal, which would affect major banks like UBS, Credit Suisse, Deutsche Bank and HSBC, comes amid a broader plan by the Fed to more closely tailor banking rules in line with firms’ risk profiles.

The proposed changes, which are subject to industry feedback, would relax the capital and stress testing requirements for the subsidiaries of foreign banks, but impose stricter liquidity rules on foreign lenders that rely