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.
Browsing: Financial stability
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.
While they have increased slightly in recent years, four key measures of banking system vulnerability remain “significantly smaller” than the period prior to the financial crisis, according to economists at the Federal Reserve Bank of New York.
The Federal Reserve and FDIC today determined that the nation’s eight largest banks did not have deficiencies in their most recent resolution plans, which detail how they would be resolved in the event of failure.
Next year, the FSB expects to tackle fintech developments worldwide, including the growing role of big tech firms in finance; the development of so-called “stablecoins,” virtual currencies pegged to real assets to minimize volatility; innovation to remove friction in cross-border payments; and the transition away from the London Interbank Offered Rate to new benchmarks.
The Basel Committee on Banking Supervision is seeking public feedback on how regulators should incorporate “crypto-assets,” including virtual currencies like bitcoin, into bank supervision.
The Treasury’s Office of Financial Research flagged corporate credit, market, macroeconomic and cyber risk as elevated concerns in its annual financial stability report today.
A new analysis by the Financial Stability Board of the global post-financial crisis regulatory framework found that the regulatory reforms did not have “material and persistent negative effects on [small and medium enterprise] financing in general,” though some of the more stringent risk-based capital requirements may have slowed the pace of financing or caused credit conditions to tighten at the banks capitalized the least before the crisis in some locales.