The Clearing House Association released research that finds that the largest banks have incurred $27-$45 billion in annual costs related to post-crisis regulation. The study considers the annual cost of compliance with the: (i) G-SIB capital surcharge, (ii) enhanced supplemental leverage ratio, (iii) liquidity coverage ratio, (iv) net stable funding ratio, (v) proposed rules on long-term debt and wholesale funding, and (vi) Tester amendment. The study excludes offsets that are difficult to quantify, such as those related to CCAR, and thus likely underestimates the overall cost of compliance.
You Might Also Be Interested In...
Bank Capital and Stress Testing Goldilocks and the Fourth Way: Assessing Credit Risk for Capital Purposes
Bank Capital and Stress Testing Regulators Ask Banks To Assess Climate-Related Risks From Largest Counterparties, but Data Gaps Persist
Bank Activities and Structure Remarks by John Court at the Virginia Law and Business Review 2021 Symposium
Bank Capital and Stress Testing Reserve Balances, Noninterest Expenses, and Bank Performance in the Stress Tests
More Posts by This Author
FinTech & Innovation Central Bank Digital Currencies: Costs, Benefits and Major Implications for the U.S. Economic System
Systemic Risk & TBTF New Study on Bank Bond Spreads Finds No Evidence of TBTF Effects on Large Bank Funding Costs