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.
The FDIC and the Federal Reserve today provided information to eight large financial institutions to guide their targeted resolution plan submissions, which are due July 1, 2021.
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.
All 33 banks participating in the Federal Reserve’s 2020 supervisory stress tests would remain above minimum regulatory capital levels under three COVID-related downside scenarios.
The latest stress test results for the nation’s largest banks will include a “sensitivity analysis” of how institutions would perform under three distinct scenarios related to the coronavirus pandemic and economic recovery, Federal Reserve Vice Chairman for Supervision Randal Quarles said today.
In an effort to enable banks to safely expand their balance sheets to meet the needs of customers during the coronavirus pandemic, federal banking regulators on Friday issued an interim final rule allowing depository institutions to temporarily exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the calculation of the supplementary leverage ratio.
In a comment letter to the financial regulatory agencies today, ABA warned of potential unintended consequences that could arise as a result of a recent interim final rule delaying the three-year phase-in of the regulatory capital effects of the CECL standard for two years.
Getting the Main Street Lending Program facilities up and running is a “top priority” for the Federal Reserve, Vice Chairman for Supervision Randal Quarles said in testimony before the Senate Banking Committee today.
The nation’s banks “entered the current crisis well positioned to support continued lending” during the pandemic, the Federal Reserve said in its supervision and regulation report released today.