This note is one in a series that will focus on how the capital rule proposed by the U.S. federal banking agencies in July 2023 would affect particular markets. The federal banking agencies’ proposed capital rule includes risk weights for the credit risk of consumer cards and other consumer credit products. These risk weights are …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
This note is the first in a series that will focus on how the capital rule proposed by the U.S. federal banking agencies in July 2023 would affect particular markets. The capital rule proposed by the federal banking agencies establishes risk weights for residential mortgages that exceed both those negotiated by agency staff at the …Read More
A Basel Sticking Point: Op Risk Federal Reserve Governor Christopher Waller said he would consider supporting the final Basel capital rule if the proposal’s operational risk element is revamped. “If there’s some willingness to move on operational risk and some other things, there is a possibility that this could be put forward in a revamped …
On Nov. 9, the Federal Reserve released its latest semi-annual report on supervision and regulation. These reports are valuable for the insights they provide into trends and developments relating to U.S. bank holding company supervision, about which little other information is available to the public. In this post, we identify some key takeaways from the …
The Dodd-Frank Act of 2010 required the Federal Reserve to disclose to the public information on each discount window loan with a two-year lag. In this note we summarize the data on collateral provided in the four most recent available quarters of data – 2020Q4 to 2021Q3. In total, the institutions that borrowed from the …
Basel Costs Front and Center on Capitol Hill The high price of higher capital requirements raised bipartisan concerns on Capitol Hill this week as top banking regulators – the Federal Reserve’s Michael Barr, OCC Acting Comptroller Michael Hsu, FDIC Chairman Martin Gruenberg and NCUA chief Todd Harper — convened for regular oversight hearings. The hearing …
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The research department conducts long- and short-term analysis on issues primarily related to bank regulation and supervision with the objective of encouraging welfare-enhancing regulatory change. Our economists conduct academic-level research intended for presentation at conferences and publication in peer-reviewed journals.