Why reg relief is moving in the right direction

Recent steps by the Congress and the Treasury, Federal Reserve Board, Comptroller of the Currency and the Federal Deposit Insurance Corp. suggest a welcome departure from the trend of one-size-fits-all rules — and a return to principles-based regulation anchored in regulatory common sense and sound...

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Bibliographic Details
Published inThe American banker no. 183
Main Author Vartanian, Thomas P
Format Newspaper Article
LanguageEnglish
Published New York, N.Y SourceMedia dba Arizent 21.09.2018
Subjects
International finance
Regulation of financial institutions
United States > US
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Summary:Recent steps by the Congress and the Treasury, Federal Reserve Board, Comptroller of the Currency and the Federal Deposit Insurance Corp. suggest a welcome departure from the trend of one-size-fits-all rules — and a return to principles-based regulation anchored in regulatory common sense and sound financial judgment. The law attempts to recalibrate regulation to reality by raising the threshold for bank holding companies to be considered systemically important, creating a capital “off-ramp” for community banks based on their leverage and risk profile, establishing higher thresholds for application of the Volcker Rule, easing risk weighting for high volatility commercial real estate exposures and reducing periodic reporting requirements. Large institutions are currently subject to more than two dozen capital and liquidity requirements, including Basel III, stress tests, comprehensive capital analysis and reviews, counterparty default rules, global market shock components, total loss-absorbing capacity standards, counter-cyclical and capital conservation buffers, primary and supplemental leverage ratios and standard and advanced risk-weighting.
ISSN:0002-7561
1945-578X