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Banking Supervision

All articles tagged with #banking supervision

Fed Seeks Public Comment on Codifying Debanking Protections in Bank Supervision
business5 days ago

Fed Seeks Public Comment on Codifying Debanking Protections in Bank Supervision

The Federal Reserve Board requests comment on a proposal to codify the removal of reputation risk from its supervision of banks, reaffirming that institutions should not be pressured to debank customers for lawful activities or political views. This builds on June’s decision to exclude reputation risk from examinations and aims to ensure supervisory decisions are based on material financial risk, with increased clarity in decision making; the 60-day comment period runs after publication in the Federal Register.

via Federal Reserve Board (.gov)|
#banking-supervision#business#federal-reserve
Fed admits oversight failure in Silicon Valley Bank collapse
finance2 years ago

Fed admits oversight failure in Silicon Valley Bank collapse

The Federal Reserve's top regulator, Michael Barr, has admitted that the banking supervisors failed to take appropriate action to address the growing problems at Silicon Valley Bank before it collapsed last month. Barr stated that the supervisors did not fully appreciate the extent of the vulnerabilities as SVB grew in size and complexity, and when they did find risks, they did not take sufficient steps to ensure the firm fixed those problems quickly enough. This signals a broad push to toughen rules on the industry.

via The Wall Street Journal|
#banking-supervision#federal-reserve#finance
Fed report on SVB collapse raises concerns over US banking system.
finance2 years ago

Fed report on SVB collapse raises concerns over US banking system.

The Federal Reserve is set to release its investigation report on the collapse of Silicon Valley Bank (SVB), the second-biggest in US history, on Friday. Former Fed official Randal Quarles doesn't expect the report to uncover any smoking guns, but it will identify things that need to be looked at without having final recommendations. SVB's failure was due to mismanagement, and the report will review SVB's growth and management, supervisory engagement, and regulatory requirements. The report may recommend changing the process for elevating issues supervisors identify up the chain of command.

via CNN|
#banking-regulation#banking-supervision#depositors
SVB's Mismanagement and Rapid Withdrawals Lead to Regulatory Crackdown.
finance2 years ago

SVB's Mismanagement and Rapid Withdrawals Lead to Regulatory Crackdown.

The Federal Reserve's head of banking supervision, Michael Barr, said he was made aware of Silicon Valley Bank's interest rate risk-related issues in mid-February, just weeks before its failure. Fed staff had previously raised concerns over SVB's interest rate risk and liquidity management in November 2021 and barred the bank from growing through mergers or acquisitions in mid-2022. However, Barr said he was not made aware of the issues until a staff presentation last month.

via New York Post |
#banking-supervision#federal-reserve#finance