Washington, D.C. — Bank Policy Institute President and CEO Greg Baer issued the following statement on today’s Basel proposal from the federal banking agencies: Today’s proposal would unnecessarily increase the amount of required capital for banks, with resulting harm for consumers and small businesses and a continued migration of financial activity into unregulated parts of the …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
On Monday, Federal Reserve Board Vice Chair Barr gave a speech that described the results of his “holistic review” of capital standards. We highlight and analyze in this blog post nine key parts of that speech that strongly suggest that this “holistic review” failed to consider an important range of issues and reached policy conclusions …Read More
The new market risk component of the Basel III Endgame, the Fundamental Review of the Trading Book (FRTB), is expected to raise market risk capital requirements significantly. These capital increases are not the result of an increase in the underlying risks of the trading activities of banks but are rather the product of excessive conservatism …
A Comprehensive Look at ‘Optimal’ Bank Capital The U.S. banking agencies just proposed dramatic increases in bank capital requirements. To support this significant change, the agencies stated that current U.S. capital requirements are “toward the low end of the range of optimal capital levels described in the existing literature.” This statement is frequently cited – …
Washington. D.C. – The Bank Policy Institute today announced the hiring of Samantha Riley as a Senior Vice President and Senior Associate General Counsel on the Regulatory Affairs team. Sam’s experience spans several significant policy areas in global finance. She previously served in various senior management roles at the Bank of England, including as a …
The recently released proposal by the Fed OCC, and FDIC would substantially revise the capital requirements for large banks in ways that would result in significant increases in those requirements. As a partial justification for this change, the agencies stated that “current capital requirements in the United States are toward the low end of the …
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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.