Federal Reserve bank liquidity rules may have contributed to this fall’s repo market volatility, which in turn caused the Fed to resume open market activities, Fed Vice Chairman for Supervision Randal Quarles told the House Financial Services Committee today.
The U.S. banking sector remains strong overall, with banks maintaining strong capital and liquidity levels while seeing healthy loan growth and profitability, according to the Federal Reserve’s supervision and regulation report released today.
The American Bankers Association joined three other financial trade associations in a comment letter to the FDIC, Federal Reserve and OCC last week seeking additional clarity on the recently issued final rules tailoring the application of enhanced prudential standards and applying capital and standardized liquidity requirements.
ABA today wrote to the heads of the Federal Reserve, FDIC and OCC requesting clarity on the effective date of recently finalized final rules on the tailoring of capital and liquidity standards.
In a Federal Reserve survey released today, senior financial officers from 80 U.S. banks and U.S. branches of foreign banks reported that their lowest comfortable level of reserve balances was slightly over $652 billion, down slightly from a survey earlier this year.
Structural issues in the repo market led to last week’s market turbulence.
The FDIC today flagged high loan concentrations, as well as the interest rate environment and short-term liquidity challenges, as key risks facing banks in 2019.
The sooner and more clearly defined a bank’s succession plan is developed, the easier and smoother the transition will be for customers, employees and shareholders alike.
ABA on Friday submitted feedback to the federal regulatory agencies on a recent proposal to tailor prudential regulations for foreign banking organizations.
The Basel, Switzerland-based Financial Stability Board today released for consultation an analysis of the effects of post-crisis regulation—specifically the Basel III capital and liquidity requirements—on lending to small and medium-sized enterprises.