CECL Transition Delay Effective Today
The Federal Register today includes the banking agencies’ final rule giving institutions the option to delay the regulatory impacts of CECL transition for two years, followed by an additional three years.
IMF Staff Posits Two Ways Central Banks Can Address Inequality
The IMF has posted a staff study concluding that central banks can indeed influence inequality via monetary policy.
FRB-NY: GSIB Subsidy Gone, Maybe Not Forgotten
Reflecting ongoing FSB work evaluating the GSIB framework (see FSM Report TBTF23), the Federal Reserve Bank of New York’s blog today includes a post assessing one FSB conclusion: that TBTF reforms have succeeded with regard to reducing GSIB implicit subsidies.
Fed Opens Capital-Planning Standards, Aligns Them with Other Rules
The FRB today seeks comment on general considerations raised by its capital-planning standards (see FSM Report STRESS26) as well as on ways to align these standards with the stress capital buffer (SCB, see FSM Report CAPITAL225) with the 2019 tailoring rule (see FSM Report SIFI34). Its overall questions essentially reopen the capital-planning rules for comment and thus substantive change.
Fed Sets Restrictive Big-Bank Dividend Policy, Brainard Still Opposes
As anticipated, the Fed today released its stress-tested decisions on large-bank capital adequacy. Although the Board has continued the stock-repurchase bar on BHCs with assets over $100 billion, it is now also capping dividends to 2Q payouts and a recent-income metric.