Fed’s SLR reform must address interest rate risks – experts
Planned change receives support from some, but others warn of slippery slope to excessive deregulation
The US Federal Reserve’s planned easing of the supplementary leverage ratio (SLR) should be accompanied by changes to risk-based capital requirements that reflect interest rate risks, experts have argued.
Last week, the Financial Times reported that the Fed, along with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, had been preparing to announce a cut to the SLR “in the next few months”.
Adopted in 2014 as part of the reforms following the global
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