Mnuchin: Foreign Investment in U.S. Banking Industry Drives Economic Growth

Foreign investment in the U.S. banking system helps to diversify the financial system and drive economic growth, Treasury Secretary Steven Mnuchin said today in remarks at the SelectUSA Investment Summit in Washington, D.C.

Mnuchin noted that several recommendations in the recent Treasury report on regulatory reform focused on encouraging foreign investment in the U.S. financial system. These recommendations include applying enhanced prudential standards for foreign banking organizations based on their U.S. footprint rather than global consolidated assets; recalibrating international holding company requirements; and recalibrating the Federal Reserve’s long-term debt and total loss absorbing capacity rule.

“In implementing these reforms, we will increase credit and liquidity in the market, while still protecting the taxpayer,” Mnuchin said.

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Monica C. Meinert

Monica C. Meinert is deputy editor of the ABA Banking Journal and a senior editor at the American Bankers Association, where she oversees ABA Daily Newsbytes.