CONTACT: Barbara Hagenbaugh
(202) 457-8783
bhagenbaugh@fsforum.com
Largest banks expect to continue to be held to the highest standards
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following statement today after President Biden announced his decision to renominate Federal Reserve Chairman Jerome Powell and to nominate Dr. Lael Brainard as Fed vice chair:
“We congratulate Chairman Powell and Gov. Brainard and look forward to continuing to work with them. The largest banks in the United States are strong, well-capitalized and have been a key source of support for American households, businesses, and communities during the pandemic and recovery. We expect regulators will continue to hold the largest banks to the high regulatory and supervisory standards that have remained in place to support a resilient and essential part of the U.S. financial system.”
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Background
Global Systemically Important Banks, or GSIBs, are subject to the highest regulatory and supervisory standards. These standards, which were put in place more than a decade ago, have been maintained or strengthened in recent years. Capital requirements for these banks have more than doubled from 2015 to 2021. Liquidity requirements have increased. And the Federal Reserve continues to conduct rigorous stress tests – using hypothetical scenarios far worse than the financial crisis — to ensure the largest banks hold enough capital to be able to continue to lend and remain strong even in the face of significant headwinds.
Learn more about the robust regulatory and supervisory standards for U.S. GSIBs here.
The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, deep and liquid capital markets, financial inclusion, a competitive global marketplace, and a sound financial system.
Visit our website: fsforum.com