In remarks in New York last night, Federal Reserve Vice Chairman for Supervision Randal Quarles suggested that making reserves and Treasury securities more interchangeable from a liquidity regulation and supervision perspective could help improve the efficiency of the financial system and prevent sudden liquidity crunches in the markets, such as those that occurred last September.
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.
The proposed update to Fannie Mae and Freddie Mac seller/servicer eligibility includes new requirements for the servicing of Ginnie Mae mortgages.
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.
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.