Let the market regulate banks – FDIC’s Hoenig
Proposal to take an axe to risk-based capital, stress testing and parts of the Volcker rule
A slew of anti-market regulations in recent decades has encouraged banking sector concentration and a one-size-fits-all approach, Thomas Hoenig said on May 12, as he outlined a possible alternative.
The US Federal Deposit Insurance Corporation (FDIC) vice-chair has long been hostile to elements of post-crisis – and pre-crisis – regulation. In remarks at Chapman University in California, he proposed an alternative that would place the market at the heart of banking sector discipline.
In the
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