Skip to main content

Hoenig warns reliance on long-term debt could represent systemic vulnerability

FDIC vice-chairman comments on Fed and disagreement over ‘living wills’

Thomas Hoenig
Thomas Hoenig: "[Equity] is not an inhibitor of lending – it is a facilitator"
Steve Daszco

Thomas Hoenig, vice-chairman of the Federal Deposit Insurance Corporation (FDIC), has warned against allowing long-term debt to become a substitute for equity on bank balance sheets, saying an overreliance on debt could leave the banking system vulnerable to a systemic crisis. He suggests the ‘living will' process in the US could help find the right balance.

Under the internationally agreed model for resolution, banks must be structured, so losses pass upwards to the bank holding company (BHC)

Solo los usuarios que tengan una suscripción de pago o formen parte de una suscripción corporativa pueden imprimir o copiar contenido.

Para acceder a estas opciones, junto con todas las demás ventajas de la suscripción, póngase en contacto con info@centralbanking.com o consulte nuestras opciones de suscripción aquí: subscriptions.centralbanking.com/subscribe

Actualmente no puede copiar este contenido. Póngase en contacto con info@centralbanking.com para obtener más información.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Regístrese en Central Banking

Todos los campos son obligatorios, salvo que se indique lo contrario.

Mostrar contraseña
Ocultar contraseña

Most read articles loading...

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

Iniciar sesión
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

.