Francisco Covas

Regulators are pushing a scheme that is completely out of touch with international regulatory norms. It would irreparably harm both consumers and the U.S. economy.

A recent joint analysis of large syndicated loans urged banks to improve their risk management, even though evidence suggests that nonbanks, not banks, hold the higher share of risky leveraged loans.

When one considers the available data on bank lending, there is a lot more to the story. The solid loan growth at commercial banks in recent years has been concentrated in some of the sectors that appear least in need of credit.