October 14, 2022
Federal Reserve Board invitations public touch upon an advance discover of proposed rulemaking to boost regulators’ potential to resolve giant banks in an orderly approach ought to they fail
For launch at 12:00 p.m. EDT
The Federal Reserve Board on Friday invited public touch upon an advance discover of proposed rulemaking to boost regulators’ potential to resolve giant banks in an orderly approach ought to they fail.
Current merger exercise and natural progress have elevated the dimensions of huge banking organizations. In the event that they had been to fail, their giant measurement might complicate efforts by regulators to resolve the companies with out disruption to prospects and counterparties.
Because of this, the advance discover of proposed rulemaking asks for touch upon a number of potential new necessities and sources that may very well be used for an orderly decision of those giant banking organizations, together with a long-term debt requirement.
“Because the banking system adjustments, policymakers should constantly consider whether or not resolution-related requirements and prudential requirements for giant banks hold tempo,” Vice Chair for Supervision Michael S. Barr stated. “That’s the reason we welcome touch upon an advance discover of proposed rulemaking on resolution-related requirements, and are evaluating whether or not capital necessities for giant banks, together with world systemically essential banks—in addition to different components of the prudential framework—ought to be up to date.”
The advance discover of proposed rulemaking was collectively developed with the Federal Deposit Insurance coverage Company (FDIC). Feedback can be accepted for 60 days after publication within the Federal Register.
Additionally on Friday, the Board introduced its approval of the applying by U.S. Bancorp, of Minneapolis, Minnesota, to accumulate MUFG Union Financial institution, Nationwide Affiliation, of San Francisco, California. In reference to the Board’s approval, U.S. Bancorp has dedicated to supply the Board and the FDIC with an interim replace to its decision plan reflecting the mixed group, and implementation plans associated to heightened prudential requirements.
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October 14, 2022