Liquidity requirements

With the loan-to-savings ratio at its highest point in four decades, some CUs have limited options to boost their funding.

During its monthly meeting, the National Credit Union Administration board also approved a proposal to increase CU access to non-member deposits, a move bankers are already railing against.

Regulators and lawmakers go to great lengths to avoid using the term for reforms in the Trump era, but its meaning is consistent with recent steps to revise and clarify the post-crisis regime.

The Federal Reserve Board unveiled a host of proposed changes to tailor U.S. supervision of foreign firms, as well as a proposal easing “living will” requirements for both domestic and overseas banks.

Banks say regulatory relief efforts should go even further, while public interest groups — and even one of the Fed’s regional offices — say the proposals to roll back supervisory standards go too far.

Fintechs are developing data-crunching, automated products that seek to help banks precisely calibrate capital levels. The banks' goal is to pass stress tests while maximizing returns to investors.

The choice appears to reaffirm U.S. regulators' commitment to the international standards-setting body.

On the verge of controlling the Financial Services Committee, House Democrats criticized proposed changes to the Federal Reserve Board's post-crisis supervision program.

The banking agencies have proposed weakening several liquidity, capital and stress test requirements without considering the cumulative effect of the many changes being undertaken.

The Federal Reserve Board plan to revise its post-crisis framework promises reduced compliance costs and other benefits. But some analysts see the removal of guardrails as increasing failure risk, which may spook investors.