WASHINGTON—U.S. regulators rescinded stricter oversight of General Electric Co.'s finance arm, GE Capital, after saying the company had made changes that significantly reduced its threat to U.S. financial stability.

The U.S. Financial Stability Oversight Council said it had voted this week to remove the company's "systemically important" tag. Treasury Secretary Jacob Lew said the change shows that designation is a "two-way process."

The head of GE Capital, Keith Sherin, said the decision is a result of the transformation of GE Capital into a "smaller, safer financial services company."

Write to Ryan Tracy at ryan.tracy@wsj.com

(END) Dow Jones Newswires

June 29, 2016 09:45 ET (13:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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