Bank Regulators Hope to Sell Congress on Deregulation
Publihed in PYMNTS
Bank regulators in the United States are headed to Congress to tout the benefits of deregulation.
Their argument is that scaling back banking rules and oversight will spark economic activity without creating more systemic financial risks, Reuters reported Thursday (June 4). Chief regulators from the Federal Reserve, the FDIC. and the OCC are expected to testify before the House Financial Services Committee Thursday on their efforts to reconsider and relax several bank rules established in the wake of the 2008 financial crisis, according to the report…
Read moreFed's Barr: Regulatory Relief Increased Big Bank Profits, Not Lending
Kyle Campbell, American Banker
Recent reforms by the federal banking agencies have benefited the largest banks in the country while offering little benefit to community banks or the broader economy, according to one official on the Federal Reserve Board.
Fed Gov. Michael Barr, speaking at an event hosted by the Community Development Bankers Association on Wednesday morning, said the various regulatory changes and proposals issued during the past year — including changes to capital standards and liquidity requirements — have disproportionately benefited the biggest banks in the country…
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BPI, ABA Urge Federal Reserve to Adjust Tailoring Rule Thresholds
Bank Policy Institute (BPI)
The BPI and the American Bankers Association today urged the Federal Reserve to modify the thresholds for the Fed’s current tailoring rule, which determines regulatory thresholds for banks of varying sizes, to account for economic growth and inflation in recent years.
In a comment letter filed today, the associations noted that the tailoring framework was designed to align regulatory requirements with banks’ size, complexity and risk profile. Without periodic adjustments, thresholds become increasingly disconnected from those objectives as the economy grows…
Read moreAgencies Remove Additional References to Reputation Risk
Board of Governors of the Federal Reserve System; Federal Deposit Insurance Corporation; and the Office of the Comptroller of the Currency
The federal bank regulatory agencies today jointly updated certain interagency documents to remove references to reputation risk.
The agencies are taking this action to complement their earlier actions that ended the use of reputation risk in supervision. As the agencies have previously noted, reputation risk can be misused by supervisors as a basis to encourage or pressure a bank to restrict individuals’ and legal businesses’ access to financial services due to their constitutionally protected political or religious beliefs, speech, or conduct or lawful business activities…
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