Liquidity

The Federal Housing Finance Agency issued a proposed rule for the Federal Home Loan Bank System that allows the FHFA director to set "reasonable" board compensation.

The Federal Housing Finance Agency has proposed a change to capital rules on interest-bearing deposit accounts that would increase the Federal Home Loan Banks' flexibility to manage liquidity during times of stress.

The peak level of daylight overdrafts has diverged from the average level, which is usually a warning sign of reserve scarcity. This time it may be different.

Federal Reserve Vice Chair Michael Barr announced upcoming regulations requiring large banks to preposition collateral at the Fed's discount window and maintain minimum reserves based on uninsured deposit levels.

Federal Reserve Vice Chair for Supervision Michael Barr conceded major points to the industry on last year's capital reform proposal. But how regulators will approach other reforms in light of that experience is uncertain.

Home Loan bank executives said Congress would have to pass a law for the system to increase its affordable housing contribution above 10% of earnings.

Federal Reserve Vice Chair for Supervision Michael Barr Wednesday downplayed the significance of recent turmoil at New York Community Bank, noting that liquidity and stability in the banking system is in "much better shape than it was last spring."

The Bank Term Funding Program, established during last year's liquidity crunch, will stop issuing new loans on March 11. Until then, banks can still borrow from the facility, though at less favorable terms.

The acting comptroller of the currency said regulators should give "serious consideration" to enacting a rule requiring banks to have enough assets pledged to the Federal Reserve's discount window to cover "ultra short term, acute outflows."

The Federal Reserve governor was one of two to vote against issuing the so-called Basel III endgame proposal. He says work is being done to address issues with the operational risk framework, but that regulators may need to go back to the drawing board for an adequate fix.