A new targeted regulation requiring midsize and large banks to show they can maintain sufficient liquidity for at least five days during bank runs and other times of stress deserves “serious consideration,” Acting Comptroller of the Currency Michael Hsu said.
Browsing: Bank closures
A new tax created by the passage of the Inflation Reduction Act in 2022 could discourage mid-sized financial institutions from acquiring the assets of banks under receivership by the FDIC, AVA said in a letter to the Treasury Department and IRS.
The speed at which deposits left Silicon Valley Bank and Signature Bank, as well as concerns regarding banks’ ability to monetize their liquidity buffers, suggest that it may be necessary to reexamine requirements regarding self-insurance standards and discount window preparedness, Federal Reserve Vice Chairman for Supervision Michael Barr said.
The FDIC’s proposed new requirements for resolution plans for certain banks contain several aspects that would be impractical to implement, ABA said in comments to the agency.
The FDIC missed opportunities to take earlier supervisory actions and downgrade First Republic Bank before its failure in May, according to a new report by the agency’s Office of the Inspector General.
The FDIC approved a final special assessment to recover the hit to the Deposit Insurance Fund resulting from the agency’s decision to protect uninsured depositors following the Silicon Valley Bank and Signature Bank failures
Banking supervisors need to focus on the “big issues” of safety and soundness and get away from trying to manage banks, former Comptroller of the Currency Eugene Ludwig said.
FDIC examiners missed multiple opportunities to downgrade Signature Bank’s management component rating and escalate concerns before its failure in March, according to an independent party review of the agency’s handling of the New York City-based bank.
Federal Reserve Governor Michelle Bowman reiterated her call for an independent, third-party review of the Fed’s response to the recent bank failures, saying such a review was needed to provide relevant data before moving ahead with a regulatory response.
In the more than 12 years since the FDIC was given the authority to liquidate systematically important financial intuitions when they pose a systemic risk that cannot be addressed via a bankruptcy proceeding, the agency has not maintained a consistent focus on maturing the program nor has it fully established key elements to execute its responsibilities, the FDIC Office of Inspector General concluded.