Fed unveils plan to cut leverage ratio requirements
Bowman says proposed eSLR reform will free up banks’ capacity to deal in Treasury market
The US Federal Reserve has unveiled details of its plan to reduce capital requirements as it aims to free up space for major banks to intermediate in the Treasury market.
The Fed’s board of governors yesterday (June 25) voted 5–2 to move ahead with the proposal to cut the enhanced supplementary leverage ratio (eSLR).
The rule requires global systemically important banks (G-Sibs) in the US to hold an extra 2% buffer on top of the supplementary leverage ratio (SLR). The latter requires large banks
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: 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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com test test test
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com test test test
More on Micro-prudential
BoE delays implementing new market risk framework until 2028
Finalising it could be “tenuous dream”, says expert
Data automation at ‘moderate’ level in most supervisors
Over 70% of supervisors plan to upgrade data collection in the next year
Book notes: Central banking at the frontier, by Thammarak Moenjak
This well-structured book provides a comprehensive overview of the challenges digitalisation poses for finance and includes possible actions for central banks
Most supervisors monitor banks’ exposure to non-banks
But majority do not apply Pillar 2 requirements specific to non-bank exposures
Basel III not holding back development finance – Thedéen
Regulations should not be viewed as “scapegoat” for lack of investment, says committee chair
Basel Committee on right track with climate framework – expert
Outline for voluntary environmental risk disclosure “pragmatic”, former central bank official argues
ECB’s Montagner: banks, insurers need separate capitalisation
Insurance arms should not backstop banking businesses in bancassurance groups, top supervisor says
Lawsuits looming against ECB’s climate policy, expert says
Banks could go to court over imposition of daily fines related to environmental prudential rules