Regulatory reforms adopted by the world’s largest banks have bolstered the financial system’s ability to absorb the sudden economic shocks of the coronavirus pandemic, Federal Reserve Vice Chairman for Supervision Randal Quarles, who also chairs the Financial Stability Board, said in a speech today.
Testifying before the House Financial Services Committee today, Federal Reserve Chairman Jerome Powell again emphasized the strong position of the financial sector going into the COVID-19 pandemic and noted that banks have performed well in their response to the crisis.
Financial sector vulnerabilities are “likely to be significant in the near term,” as the coronavirus pandemic continues to take a severe toll on economic activity in the U.S., the Federal Reserve said in its latest financial stability report released today.
As banks continue to address the immediate challenges of the COVID-19 pandemic, the Federal Reserve and the FDIC today announced that they would extend two upcoming deadlines for certain banks required to file resolution plans for orderly resolution in the event of material financial distress or failure.
The Basel, Switzerland-based Financial Stability Board today sought public feedback on a set of 46 cyber incident response and recovery practices for financial institutions.
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.