Regional banks are definite winners in the Federal Reserve Board's plan to shake up its post-crisis regulatory framework, escaping a stringent set of requirements that would be reserved for the biggest banks.

But not everyone is cheering.

Some analysts are suggesting that the relief is a double-edged sword. On one hand, many banks with more than $100 billion of assets will enjoy reduced compliance costs, less frequent stress tests, and an easing of liquidity requirements. But on the other, some in the market may view these banks as less attractive investments because their risk of failure might go up.

“What we’re looking at is what affords creditors' protection, and two of the key elements are capital and liquidity,” said Rita Sahu, vice president and senior credit officer at Moody’s Investor’s Service, in an interview. “These regulatory requirements … are kind of guardrails to ensure the safety and soundness of the institution, as well as the whole system. And so without the guardrails, it’s kind of up to management on how they want to manage their business and their balance sheet.”

Read more in American Banker.