Fed’s supervision may have added to repo turmoil, Quarles says

Randal Quarles

The Federal Reserve’s post-crisis regulatory and supervisory approach may have inadvertently worsened mid-September’s repo market rate spike, its vice-chair of supervision, Randal Quarles, said.

Quarles told US lawmakers that the Fed believes its internal liquidity stress-test framework may have created a tendency by banks to hoard reserves, deterring them from depleting their cash levels to meet the September 16 and 17 repo market demands.

“The internal liquidity stress tests that we run can

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 [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: