The Federal Reserve Board today issued an interim final rule amending the treatment of the total loss absorbing capacity, or TLAC, that the eight U.S. global systemically important banks and designated foreign banks with U.S. operations are required to hold.
Federal Reserve Chairman Jerome Powell told House lawmakers today that the U.S. financial system is “strong, and has been materially strengthened since the financial crisis.”
The nation’s banks remain highly capitalized as a result of post-crisis regulatory reforms, and “are well positioned to continue lending to households in businesses even in the event of a severe global recession.”
The Federal Reserve today released the two hypothetical economic and financial market scenarios that it will use in the next round of the Comprehensive Capital Analysis and Review process for the nation’s largest financial institutions.
Since the financial crisis, large bank holding companies have seen notable declines in key risk factors, with several risk indicators near or below pre-crisis levels, according to researchers at the Federal Reserve Bank of New York.
Bank-like activity by nonbanks that poses financial stability risks grew by 1.7% to total $50.9 trillion in 2018, according to the Basel, Switzerland-based Financial Stability Board today.
Federal Reserve Vice Chairman for Supervision Randal Quarles today outlined several actions the agency is considering to increase the transparency of its supervisory activities and ensure due process for supervised institutions, acknowledging that the Fed has not “communicated as clearly as it should” with banks under its supervision.
While the economic outlook in the near term remains positive, persistently low interest rates and continued economic growth could encourage investors to take chase yield by taking on more risk, Federal Reserve Bank of Boston President and CEO Eric Rosengren cautioned today.
Nearly every bank says it wants to attract more millennial customers. Yet many bankers are going about it the old way—by making assumptions and generalizations about what this audience wants and needs.
A recent report by the Basel, Switzerland-based Financial Stability board highlighted significant data gaps that are impeding regulators’ ability to conduct a comprehensive assessment of the financial stability risks associated with the market for leveraged loans and collateralized loan obligations.