Throughout the COVID-19 crisis, “the benefits of a resilient banking system have been evident” as banks’ “strong capital and liquidity positions” have enabled the pandemic recovery, the Federal Reserve said today in its supervision and regulation report.
In a comment letter today, ABA told the Securities and Exchange Commission that any reform of money market funds should not focus on regulated banks, which have been a source of strength during the pandemic.
Following significant liquidity strains—particularly among money market mutual funds—at the outset of the COVID-19 pandemic last March, the Financial Stability Board will publish a report in July outlining “consequential policy proposals” to improve MMF resilience.
In two comment letters to the Federal Housing Finance Agency last week, the American Bankers Association weighed in on proposed changes to liquidity requirements for Fannie Mae and Freddie Mac, as well as proposed changes to resolution planning requirements for the two GSEs.
In remarks at a virtual industry event today, Fed Governor Lael Brainard commented on the strong performance of the banking sector during the COVID-19 pandemic, emphasizing that strong capital and liquidity positions will continue to be important as banks continue to face a high degree of uncertainty.
The Securities and Exchange Commission is seeking feedback on potential ways to improve the resilience of money market funds in the face of economic instability.
The Federal Housing Finance Agency today proposed new liquidity and funding requirements for Fannie Mae and Freddie Mac.
The federal banking agencies today finalized the Net Stable Funding Ratio, a long-term liquidity measurement that was the last major unfinished element of the Basel III liquidity standards.
Speaking at a virtual event today, FDIC Chairman Jelena McWilliams acknowledged banks’ strong response to the coronavirus pandemic—from their quick pivot to remote operations to meeting the credit needs of the communities they serve.
As policymakers consider reforms to the three-decade-old brokered deposit rules, they should “think about what the appropriate guardrails are to mitigate the challenges that the brokered deposit law was put into place to address,” and how best to apply those guardrails to a modern banking system, said Mary Fowler, CEO of Peoples Bank in an American Banker op-ed today.