Kyle Campbell covers the Federal Reserve and housing policy for American Banker. Previously, he wrote about institutional investment in real estate for PERE. He has also held staff positions at Real Estate Weekly, the New York Daily News and the Southampton Press.
The Federal Reserve is leading the push for broader, more standardized risk-capital rules, yet some of its board members, other regulators and industry groups are uncomfortable with the proposal.
Citing issues that arose during this spring's bank failures, the central bank and other agencies urge depositories to ensure they are ready to borrow at a moment's notice.
The Federal Reserve released its list of large bank capital requirements based on the results from this year's stress test. While overall capital obligations will decline, some firms will have to hold more capital.
Federal Reserve Board Gov. Phillip Jefferson joined three other board members in supporting a notice of proposed rulemaking, but expressed concerns about the economic impact of the changes.
The two Trump-appointed governors expressed skepticism that the increased capital requirements for regional banks were necessary to keep the banking sector resilient.
Following the difficulties of Silicon Valley Bank and Signature Bank this spring, banks are approaching the emergency lending facility more proactively, the Federal Reserve chair said.
The Bank Policy Institute and American Bankers Association want the Federal Reserve to conduct a public review process when determining scenarios for the annual exams. They also want more information on the test's internal models and formulas.
The U.S. division of the Swiss bank will have to pick up the tab for its one-time rival, which it acquired in a government-brokered deal earlier this year.
The Federal Reserve Board of governors will discuss the much anticipated capital changes on Thursday afternoon.
The launch of FedNow, the Federal Reserve's instant-settlement system, raises many questions for banks, card networks and fintechs regarding costs, routing and other concerns.