Large Bank Capital and Reality: Learning From the Past to Improve the Future
Large Bank Capital and Reality: Learning From the Past to Improve the Future Introduction Bank regulators have now begun a […]
BankNotes Blog
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BankNotes Blog
Transparency and the Improved Design of Stress Test Scenarios
Introduction Recently, the Federal Reserve Board (FRB) embarked on an important initiative to significantly increase transparency in its stress testing
BankNotes Blog
Explicit Safeguards Have Replaced Implicit Guarantees
Introduction Since the financial crisis, regulators have dramatically tightened the large bank regulatory regime by substantially increasing capital, liquidity, and
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A Cure Worse Than the Disease: Massive Expansion in Deposit Insurance Would Worsen, Not Improve, Financial Stability
Introduction Recently, policymakers have considered significantly raising the amount of FDIC deposit insurance for smaller and mid-sized banks. Some proposals
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The “Bank” Capital Shell Game: Would the Real Bank Capital Requirement Please Stand Up?
Introduction Recently, bank regulators issued a proposal to modernize the supplementary leverage ratio (SLR) after the Federal Reserve publicly committed
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Reflections on the Federal Reserve’s Integrated Review of the Capital Framework for Large Banks
Introduction Earlier this week, the Federal Reserve held a conference to consider the state of the capital regime for large
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A Level Set on the Proposal to Reform the Supplementary Leverage Ratio
Introduction This week, the Federal Reserve Board, OCC and FDIC issued a proposal to reform the supplementary leverage ratio (SLR).
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To Infinity and Beyond? The Supply of Safe Assets and GSIB Capital Surcharges
Introduction Twelve years ago, international regulators imposed a new capital requirement on the world’s largest banks, a group of roughly
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Correcting the Record on Leverage Reform: Leverage Requirements are Already Backfiring
In a recent op-ed, Sheila Bair recited a litany of age-old canards about leverage requirements and leverage reform that are
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Promises Made, Promises Kept? The Urgency of Leverage Ratio Reform
Introduction Nearly four years ago, the Federal Reserve committed to reconsider the supplementary leverage ratio (SLR) in light of the massive, COVID-driven