"Vice Chair for Supervision Barr's Testimony: Insights on Supervision and Regulation"
Vice Chair for Supervision Barr testified before the Committee on Financial Services, U.S. House of Representatives, discussing the soundness and resilience of the banking system, current conditions in the banking sector, supervision, and recent regulatory proposals. Barr highlighted that the banking system is sound and resilient, with capital and liquidity ratios above regulatory levels. He also addressed the failures of certain banks due to excessive interest rate risk and over-reliance on uninsured deposits. Barr emphasized the need for improved supervision, particularly as banks grow in size and complexity, and highlighted the importance of addressing material risks and vulnerabilities. He discussed the proposed reforms to the capital requirement framework, which aim to increase the quantity and quality of capital and reduce the likelihood of future financial crises. Barr also mentioned the proposed extension of long-term debt requirements and the finalization of a rule strengthening and modernizing the Community Reinvestment Act regulations.
