ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Compliance and Risk

ABA’s Carney shares proposals for financial regulation reform

September 9, 2025
Reading Time: 2 mins read
ABA’s Carney shares proposals for financial regulation reform

ABA EVP Hugh Carney testifies before the House Financial Services Subcommittee on Financial Institutions on Sept. 9.

In testimony before House lawmakers today, American Bankers Association EVP Hugh Carney outlined four key policy recommendations aimed at making financial regulations “more predictable, transparent and risk-focused while preserving the vibrancy and competitiveness of the American banking system.”

The House Financial Services Subcommittee on Financial Institutions held a hearing on promoting the health of the banking sector. In prepared remarks, Carney said ABA’s recommendations will make the financial system safer, more competitive and better equipped to serve customers and communities. They are:

Indexing regulatory thresholds: Carney emphasized the need to modernize outdated asset-based thresholds, noting that “indexing is a low-cost, high-impact reform that improves transparency, reduces arbitrary burden, and allows regulators to focus where the risk really is.” He cited the FDIC’s $500 million audit threshold, set in 1993, which now applies to 41% of banks — up from just 7% when it was introduced.

Modernizing the bank resolution framework: Carney called for reforms to the FDIC’s resolution process, including broadening the least-cost test, enabling greater community bank participation, and improving transparency in bidding. “Increasing the options in approaches to resolution simply builds on approaches already allowed under applicable law. ABA emphasizes that failed bank resolutions implicate multiple policy goals and multiple economic and community interests,” he said. “We urge Congress and the FDIC to work toward a framework flexible enough to take appropriate account of those goals and interests that go beyond resolution costs alone.”

Ensuring access to stable funding: Carney noted “it is critical that banks have access to stable funding sources and that statute, regulations and supervision related to funding and liquidity are aligned with modern banking, the marketplace for financial services, and reflect actual risk and risk management practices.” He urged Congress to repeal Section 29 of the Federal Deposit Insurance Act, stating that “this repeal would align prudential oversight with risk-based supervision, improve competitive neutrality, and enhance liquidity resiliency without sacrificing safety and soundness.” He said that the statute, enacted in 1989, is outdated and misaligned with modern banking and technology.

Recalibrating capital standards: Carney warned that miscalibrated capital rules “can raise borrowing costs, reduce credit availability and restrict liquidity in the economy.” As agencies consider the Basel III endgame, he advocated for a capital-neutral approach and a holistic review of leverage ratios, including finalizing the proposed changes to the enhanced supplementary leverage ratio. Carney added that “ABA strongly supports a broader holistic review of leverage ratio requirements and appropriate future rulemaking to ensure that all leverage ratios function as a backstop to risk-based capital requirements and not a binding constraint.”

Tags: ABA newsBank closuresCongressRegulatory burdenRegulatory capitalTailored regulation
ShareTweetPin

Related Posts

New law seeks to help veterans struggling with homeownership

AMBA: 634,000 aided by Veteran Benefits Banking Program

Compliance and Risk
October 24, 2025

Since its inception in 2019, the Veterans Benefits Banking Program has helped approximately 634,000 recipients switch from receiving their benefits from check or other means to direct deposit at a financial institution, the Association of Military Banks of...

FOMC minutes: Persistent inflation clouds path forward

Fed advances proposal to add transparency to large bank stress tests

Compliance and Risk
October 24, 2025

The Federal Reserve voted to advance proposed rulemaking to make stress tests for large banks more transparent and give the public more opportunities to comment on the models used in the tests.

Taylor to lead Washington Bankers Association

Taylor to lead Washington Bankers Association

Newsbytes
October 24, 2025

Duncan Taylor has been named the next president and CEO of the Washington Bankers Association, effective Feb. 1, 2026. He will succeed Glen Simecek, who is retiring at the end of January.

ABA DataBank: Gold prices slide off record high

ABA DataBank: Gold prices slide off record high

Economy
October 24, 2025

The price of gold closed at a peak of $4,336 on Oct. 20 marking a 50% increase since the start of 2025.

CFPB urges states to ban ‘junk fees,’ revamp consumer protection laws

ABA submits recommendations for easing regulatory burden on banks

Compliance and Risk
October 24, 2025

As part of a congressionally mandated review of regulation by federal agencies, ABA submitted a list of recommendations to reduce the regulatory burden on banks.

Consumer Sentiment declined in April

Consumer sentiment falls in October

Economy
October 24, 2025

The University of Michigan Consumer Sentiment Index decreased 2.7% in October compared to the month prior, landing at 53.6, according to final results for the month.

NEWSBYTES

AMBA: 634,000 aided by Veteran Benefits Banking Program

October 24, 2025

Fed advances proposal to add transparency to large bank stress tests

October 24, 2025

Taylor to lead Washington Bankers Association

October 24, 2025

SPONSORED CONTENT

Cash, Security, and Resilience in a Digital-First Economy

October 20, 2025
Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

Rethinking Outsourcing: The Value of Tech-Enabled, Strategic Growth Partnerships

October 1, 2025
What good looks like in Small Business Lending – and how to get there

What good looks like in Small Business Lending – and how to get there

October 1, 2025
The Connectivity Dividend

The Connectivity Dividend

September 1, 2025

PODCASTS

Podcast: Why branches are top priority for PNC

October 23, 2025

Podcast: From tractors to drones, how farming tech affects ag lending

October 16, 2025

Podcast: Bigger data boosts financial inclusion at Synchrony

October 9, 2025

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.