Fed considering imposing local liquidity requirements on foreign banks
The proposal will likely be one of the first of its kind in international regulation
In an unprecedented move, the Federal Reserve is considering imposing local liquidity requirements on US branches of foreign banks, it announced on April 8.
The proposal reflects the Fed’s recent moves to better align the risks a financial institution poses to the system with the regulatory requirements it faces. The support among the Fed board for the suggestions, however, is not unanimous.
“Introducing this concept is novel in the realm of international regulation (in contrast to supervision
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Financial Stability
Paul Tucker calls for collateral prepositioning
Central banks need to know what collateral banks have in advance, former BoE deputy says
Inequality exacerbates crises in several ways, Fed research finds
High-income households have a high tolerance for risk, which boosts the non-bank sector
Banks risk “significant” losses on private equity exposures – BoE official
Leverage, illiquidity and complex structures make funds vulnerable, executive director says
US faces real estate risks, Fed report warns
Banks face funding stresses while uncertainty over policy is a risk, Federal Reserve says
Asian policy-makers move to support currencies
Indonesia and Vietnam intervene in markets, while Japan, Korea and Malaysia issue warnings
MAS to spend $25 million on sustainable finance training
Singaporean central bank says local universities are providing more courses in the field
The American way: a stress-test substitute for Basel’s IRRBB?
Bankers divided over new CCAR scenario designed to bridge supervisory gap exposed by SVB failure
Banks’ AI models are flawed – Basel Committee chair
Pablo Hernández de Cos says risk of AI model misspecification is “incredibly high”
Most read
- ECB says iPhone is currently incompatible with digital euro
- Supervisors grapple with the smaller bank dilemma
- Schnabel: ECB could replace central forecast scenario