US Sifis: asset-based approach under fire

Author: John Crabb | Published: 29 Jan 2018

The Senate Banking Committee has put forward compiled a bill that seeks to address some of the more pressing issues of US banking regulation, and in doing so is seeking to undo some of the protections put in place by the Dodd-Frank Act in 2010.

While not as far reaching as the re-hash of the ill-fated Financial Choice Act that passed the House last year, the bill suggests some important changes. These have been met with mixed reactions, and include increasing the threshold of definition for so-called systemically important financial institutions (Sifis) and exempting small banks with under $10 billion in assets from complying with the Volcker rule.

Led by the Republican Senator for Idaho, Mike Crapo, the Economic Growth, Regulatory Relief and Consumer Protection Act was put forward in December with bipartisan support made up of Republicans, an independent and 11 democrats. It’s now up for debate in the...