FSB Ramps Up Cross-Border Payment Reform
Advancing a G20 priority, the Financial Stability Board today continued its work on cross-border payments, asking for views on quantitative targets for its cross-border reform objectives. These include improvements in cost, efficiency, and the inclusiveness that increasingly characterizes a wide array of U.S. and global payments initiatives and work on CBDC.

Biden Budget Sidesteps Key Financial Policy Questions
Although the Biden Administration’s first official federal budget includes many controversial and specific proposals, it is as always a wish list, not a guide to what Congress is likely to do nor even necessarily what individual agencies will undertake apart from actions directly germane to funding.

Quarles Throws Doubt into Prospect of SLR Rewrite
Taking a less certain stance than Chair Powell (see FSM Report REFORM203) in March, FRB Vice Chair Quarles today said that changes to the SLR are “likely,” but there are also other ways to address deposit growth. Although in March the Fed said it would soon issue a proposal for SLR changes, Mr. Quarles today also said that the Fed is still considering if any changes are needed and, if so, their timing.

BIS Study: U.S. Deposit Scarcity Subdues Small-Business Lending
A new BIS staff study uses both empirical evidence and models to find that U.S. income inequality adversely affects the ability of banks to intermediate deposits into small-business loans for very small entities, thus hindering small-business job creation.

BoE’s Bailey: No Case for Climate Capital Requirements
Tackling a question also bedeviling the Federal Reserve, Bank of England Governor Andrew Bailey today opposed incorporating climate change into capital requirements, emphasizing instead the central bank’s work to improve climate disclosures, scenario analysis, and risk management.

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