WASHINGTON — The Financial Stability Oversight Council on Tuesday met in a closed session to discuss short-term wholesale funding reform.

The 10-voting member interagency group, headed by Treasury Secretary Jack Lew, received a presentation by the Federal Reserve Board and the Federal Reserve Bank of New York on short-term wholesale funding markets. No further details on the presentation were provided.

The Fed has spent considerable time weighing further measures to address risks tied to short-term wholesale funding. Last week, Fed Chair Janet Yellen declined to provide any timelines on when regulators would move ahead with issuing a proposal, but repeated her public support for taking "some action to diminish the incentives for heavy reliance on short-term funding."

"We still see that as one of the risks to the financial system that wasn't really addressed in the risk-based capital requirements that we put out, or in the liquidity coverage ratio that's out for proposal," Yellen said in a June 18 press conference.

Fed Gov. Daniel Tarullo, who leads bank supervision at the central bank, has endorsed imposing a capital requirement tied to a bank's use of wholesale funding — an idea that Yellen has supported.

Separately, the council received an update on macroeconomic and market developments, including a presentation from the Office of Financial Research and a presentation on leveraged lending by the Office of the Comptroller of the Currency.

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