The Federal Reserve’s top regulator, who assumed the chairmanship of the international board in November, said the FSB should explain the rationale behind its financial benchmarks while establishing new ones to combat emerging threats.
The central bank has drawn mixed reviews for new stress test scenarios and changes to how much banks know about the test beforehand. Its top regulatory official says the enhancements help the post-crisis regime evolve.
Banks say regulatory relief efforts should go even further, while public interest groups — and even one of the Fed’s regional offices — say the proposals to roll back supervisory standards go too far.
The Dodd-Frank Act gave the central bank authority to set capital requirements for insurance companies that own a federally insured bank, as well as those determined to be systemically important.
From stress tests to tailoring the Dodd-Frank Act to the Volcker Rule, the banking agencies have a number of important proposals to finalize in the coming year. But there are several potential obstacles that could throw those plans off track.
