The Federal Reserve’s recent proposals that
outline possible changes to the way it keeps the financial
system strong and robust have been welcomed by the industry,
but some financial institutions will be happier than
Foreign banks have yet to be offered any relief, nor have
those that remain in certain new threshold categories that are
set to be created, such as the largest national banks. Small
and community banks, meanwhile, are set for significant
Spearheaded by vice chairman for supervision Randal Quarles
in speeches and testimonies over the last month, the Fed has
made a number of suggestions to the way that stress testing
works in the US, including amendments to stress capital buffers
and transparency, as well as the prudential standards that
govern how smaller banks operate in the country.
Briget Polichene, chief executive officer of the Institute
of International Bankers (IIB), told IFLR that...