Federal Reserve Vice Chairman Michael Barr.

(European News Agency)

[Financial Channel/Comprehensive Report] Federal Reserve (Fed) Vice Chairman Michael Barr (Michael Barr) told the Senate Banking Committee on Tuesday (28th) that after the collapse of Silicon Valley Bank (SVB), some strengthening is expected to be needed. Capital and liquidity norms for regional banks.

"Yahoo Finance" reported that Democratic Senator Elizabeth Warren (Elizabeth Warren) testified to Barr, FDIC Chairman Martin Gruenberg (Martin Gruenberg) and Treasury Undersecretary Liang Nellie at a hearing on Tuesday. Nellie Liang, to concede that tougher measures are needed to prevent similar incidents from happening again.

Please read on...

Warren pointed out that the Fed has the power to make banks with assets of US$10 billion (about NT$303.2 billion) to US$250 billion (about NT$7.5 trillion) comply with stricter standards.

Barr subsequently responded that he expected to need to increase capital and liquidity standards for banks with assets exceeding US$100 billion (about NT$3 trillion).

Barr's speech was the clearest signal yet that the Fed's top bank regulator is in favor of rewriting regional banking rules that have been loosened over the past few years.

The reforms in 2018 and 2019 have exempted financial institutions of the same size as Silicon Valley Bank from the strict requirements after the 2008 financial crisis.

Lawmakers blasted at the hearing on Tuesday that the Fed failed to fulfill its supervisory duties, while Barr said that the failure of Silicon Valley Bank was the result of mismanagement.

It also pointed out that the bank's management failed to properly address clear interest rate and liquidity risks.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news