Ladies and Gentlemen: The Bank Policy Institute and the American Bankers Association appreciate the opportunity to comment on the joint notice of proposed rulemaking issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency that would amend the capital requirements …Read More
After the 2008-09 global financial crisis, the Basel Committee on Banking Supervision, the global standard setting body for bank regulation, agreed on a complete overhaul of bank capital standards, known as “Basel III.” Jurisdictions throughout the world, including the United States and Europe, have largely implemented those standards. Generally speaking, Basel III defines minimum bank …Read More
The banking agencies’ Basel capital proposal breaches requirements of the Administrative Procedure Act, which sets clear standards for federal agency rulemaking Washington, D.C. – The banking agencies’ Basel capital proposal violates both the substantive and procedural requirements of the law that governs all federal agency rulemaking, BPI said in a joint comment letter submitted today. The proposal …Read More
On Feb. 15, 2024, the Federal Reserve released the severely adverse scenario and the global market shock (GMS) component that will be used to calculate the stress capital charge imposed on covered banks by the results of the supervisory stress tests. The Fed also announced four additional “exploratory” scenarios to evaluate the resilience of banks …
Most attention on the proposed implementation of the Basel agreement has focused on its significant capital increase as a whole and on particular asset classes. Something more fundamental is at stake, however: the relative role of the private sector and the government in allocating credit. Banks compete for loans primarily based on price and terms, …
Washington, D.C. — The Bank Policy Institute, American Bankers Association and Consumer Bankers Association made recommendations yesterday to the U.S. Department of Treasury in response to its request for information to inform its establishment of a nationwide financial inclusion strategy. The percentage of consumers with access to banking account services is at historic highs and …
Federal Reserve Releases Stress Test Scenarios On Thursday, the Federal Reserve released the scenarios for this year’s stress tests, including four “exploratory analysis” scenarios that won’t affect bank capital requirements. The 2024 stress test scenario is more severe relative to last year’s scenario. It assumes a 6.3 percentage point rise in the U.S. unemployment rate, a 55 …
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