Big banks will be hit the hardest by regulatory plans in the US, Fed official says

The chairman defends the idea of ​​expanding requirements to maintain long-term debt on banks’ balance sheets.

Estado content


November 13, 2023 at 6:37 pm – Updated 3 minutes ago

Investments in technology within banks grew by 29% in a year. Photo: Pixabay

Federal Reserve (Federal, North American Central Bank) Vice Chairman of Supervision Michael Barr, as shown in the text of the speech, assures that the big banks will be more affected by the regulatory programs that the monetary authority will act on. The President announced Tuesday, the 14th, in the United States Senate, this Monday, the 13th.

Barr also asserts that the increase in capital requirements is due to bond trading and other non-credit activities. The rules are in a public consultation period.

“We have already heard concerns that the proposed risk-based capital treatment for mortgage loans, tax credit investments, business activities and operational risk may overstate the riskiness of these activities,” he commented.

The director also defends the idea of ​​expanding the requirements for maintaining long-term debt on banks’ balance sheets.