In remarks at a Federal Reserve Bank of San Francisco event today, Fed Governor Lael Brainard discussed the potential implications that climate change could have for financial stability, and the importance of properly pricing in climate change-related risk.
A bipartisan group of 28 House members last week called on the Financial Stability Oversight Council to require that the Office of Financial Research study potential financial stability effects of the current expected credit loss model for loan loss accounting, which goes into effect for large reporting companies as soon as January.
The global financial system is resilient, with large banks much better capitalized, less leveraged and more liquid, according to the Financial Stability Board’s report on post-crisis reforms issued today.
With the financial industry facing a future without Libor—which is currently being referenced in an estimated $200 trillion of financial contracts worldwide—American Bankers Association VP Hu Benton discussed how the industry is preparing on a recent episode of American Banker’s Bankshot podcast.
In remarks at a conference at the Federal Reserve Bank of Boston today, Fed Vice Chairman for Supervision Randal Quarles highlighted ways his agency is working to make stress tests more transparent, simple and less volatile.
Progress by the largest banks in implementing the total loss-absorbing capacity standard has been “steady and significant,” according to a review published this week by the Basel, Switzerland-based Financial Stability Board.
As the Basel, Switzerland-based Financial Stability Board begins the process of evaluating whether post-financial crisis regulatory efforts are reducing the systemic and moral hazard risks associated with systemically important banks, ABA said “that the prospect of TBTF with regard to banking organizations has been addressed in the United States by these regulatory actions and the banking industry’s concomitant efforts.”
The Federal Reserve today did not object to the capital plans of 18 large banks participating in the Comprehensive Capital Analysis and Review.
To take a more holistic approach to its oversight of large and complex banks, the FDIC today announced that it will bring all of its supervision and resolution activities for the nation’s largest banks under its new Division of Complex Institution Supervision and Resolution, or CISR.
While decentralized financial technologies—such as distributed ledgers or online peer-to-peer platforms—can benefit the financial system, they are also likely to pose many regulatory and supervisory challenges, according to a report released today by the Basel, Switzerland-based Financial Stability Board.