Potential new regulatory requirements to cushion the economic effects of certain large bank failures would not result in real benefits to the financial system or the public, ABA said today in a letter to Federal Reserve and FDIC.
Economic uncertainty and rising borrowing costs have increased risk in both the residential and commercial real estate sectors, which could increase risks to U.S. financial stability, the Financial Stability Oversight Council warned in its annual report.
Thee American Bankers Association said it supported the recommendations in two recent reports on establishing a proposed framework for the international regulation of cryptoasset activities, but the association also had some recommendations for what should be included in the final framework.
The Financial Stability Board will continue to focus its efforts in 2023 on bank resolution preparedness, and completing resolution frameworks for central counterparties and insurers, according to the group’s resolution report.
Federal Reserve Vice Chair for Supervision Michael Barr previewed potential changes that could come out of a “holistic review” of bank capital standards that the agencies are currently undertaking.
The Federal Reserve and FDIC announced Wednesday that the eight largest U.S. banks did not have deficiencies in their most recent resolution plans, also known as living wills.
The current environment of swiftly rising interest rates, combined with tighter financial conditions, greater market volatility and slowing global growth “could test many of the long-standing and growing vulnerabilities in the global financial system,” the Financial Stability Board said.
The Interagency Working Group on Treasury Market Surveillance issued a progress report on steps it has taken to enhance the resilience of the U.S. Treasury market.
The Financial Stability Board issued a set of policy proposals aimed at addressing systemic risk in the non-bank financial intermediation sector, which the group said are intended to “reduce liquidity demand spikes; enhance the resilience of supply in stress; and enhance risk monitoring and the preparedness of authorities and market participants.”
Bank profitability continued to be healthy in the second quarter of 2022, in line with pre-pandemic levels and broadly unchanged from the previous quarter, the Federal Reserve said in its latest financial stability report released today