The evolution of US financial firms towards greater similarity in underlying business models and strategies creates a fundamental challenge for supervisors, Kevin Stiroh, executive vice-president of the Federal Bank of New York, said in a recent speech.
Stiroh warned homogeneity of US financial firms could lead to them becoming “systemic as a herd”, where shocks could lead to correlated responses and large-scale disruption.
In his remarks on November 1, Stiroh said several factors, including
- BoE revamps expenses rules after criticism from MPs
- Draghi warns of downside risks as ECB ends net asset purchases
- Book notes: Macroprudential policy and practice, edited by Paul Mizen, Margarita Rubio and Philip Turner
- Central banks turn to visual communication in 2018
- RBNZ launches climate change strategy