In a keynote address to bankers this morning at the 2023 ABA Washington Summit, ABA President and CEO Rob Nichols addressed the recent failures of Silicon Valley Bank and Signature Bank, urging the industry to remain calm and united in the face of what he called an “idiosyncratic liquidity disruption” at these institutions.
Browsing: Systemic risk
House Financial Services Committee Chairman Patrick McHenry (R-N.C.) and Senate Banking Committee Ranking Member Tim Scott (R-S.C.) called on the Federal Reserve to provide “a comprehensive timeline of events related to the Federal Reserve’s lending, supervisory, and examination activity for the last two years with regards to [Silicon Valley Bank] and/or Signature Bank.”
As the Senate considers the 2023 National Defense Authorization Act, ABA and the Bank Policy Institute urged lawmakers to omit language that would create a designation for “systemically important entities,” including large banks, for the purposes of assessing risks to critical infrastructure entities.
The OCC is seeking comments on the renewal of its guidelines establishing standards for recovery planning by certain large banks.
The New York Department of Financial Services today issued a letter to state-regulated financial institutions outlining the department’s expectations for managing climate change risk.
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.”
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.
ABA on Friday submitted feedback to the federal regulatory agencies on a recent proposal to tailor prudential regulations for foreign banking organizations.
With leveraged lending-related risk on regulators’ minds — and on the agenda of the House Financial Services Committee tomorrow — the ABA Banking Journal Podcast discusses the issue with ABA Senior Economist Curtis Dubay.
Federal Reserve Vice Chairman for Supervision Randal Quarles today defended the agency’s decision to hold the countercyclical capital buffer for banking organizations using the Basel III advanced approaches at zero percent for the third year in a row, noting that financial vulnerabilities remain within their normal range.