Fix the frame, wipe the glass
Recent experience, particularly with the Bank Term Funding Program, shows how to improve the functioning of the Fed’s discount window and strengthen financial stability.
Recent experience, particularly with the Bank Term Funding Program, shows how to improve the functioning of the Fed’s discount window and strengthen financial stability.
The final rule is intended to address changes to the operational risk, technology and landscape in which FMUs operate that have taken place since the requirements were last updated in 2014.
At 5.25% to 5.5%, the target range for the federal funds rate has likely reached its peak in a cycle of policy tightening that began in early 2022, the Federal Reserve said in the first of its biannual reports to Congress on monetary policy.
The Financial Stability Board released its work program for 2024, which summarizes ongoing and planned FSB initiatives.
In a letter to President Biden, ABA President and CEO Rob Nichols warned that the large number of regulatory initiatives currently under consideration by banking regulators will have a chilling effect on the financial sector and broader U.S. economy, resulting in further tightening of credit, higher prices for banking services and more bank consolidation.
For the first time, the Financial Stability Oversight Council has labeled the use of artificial intelligence in financial services as an emerging vulnerability in the financial system.
Regulators should be concerned that a stablecoin integrated with traditional financial services would introduce a new risk to deposit safety and, more broadly, financial stability.
As part of its ongoing work to address climate-related financial risks to the global banking system, the Basel Committee on Banking Supervision published a consultation paper outlining a rationale and approach for disclosure of these risks under Pillar 3 of the Basel framework.
The banking sector has stabilized since bank failures earlier this year, but the vulnerabilities at certain nonbank financial institutions could play “a key role” in amplifying stress associated with tightening financial conditions and slowing economic activity, Federal Reserve Governor Lisa Cook said.
The Financial Stability Oversight Council adopted a new analytic framework for gauging financial stability risks and approved updated guidance for determining whether nonbanks should be subject to Federal Reserve supervision.