#capital buffer – Page 2 – Federal Financial Analytics

12 01, 2022

REFORM211

Arezou Rafikian2023-04-24T15:49:07-04:00January 12th, 2022|5- Client Report|

FedFin Forecast: Prudential Regulatory Framework Set for Structural Change Largely Built on Current Standards

As promised, FedFin begins our 2022 forecasts with this in-depth report on bank regulation. In general, we conclude that the context of decisions in 2022 and beyond will shift from a focus on tailoring efficiencies and burden relief to one emphasizing risk mitigation, fairness, equity, and — for the very biggest banks — a smaller systemic footprint. This report looks at the impact of pending personnel decisions as well as the outlook for climate-risk, new capital rules, FBO standards, and other key issues. The only rule we think might get a near-term substantive rewrite is the stress capital buffer (see FSM Report CAPITAL225) via tougher CCAR standards and a reversal of the prior decision to end qualitative objections. The odds of a leverage rewrite are smaller, but not negligible.

REFORM211.pdf…

10 01, 2022

Al011022

Arezou Rafikian2023-04-25T14:02:41-04:00January 10th, 2022|3- This Week|

2022 BUILDING BLOCKS

We hope the holidays gave you a relaxing break no matter your travel and omicron worries. FedFin staff stayed busy because so did federal policy-makers. Actions in the last two weeks or so lay a solid platform for game-changing decisions in 2022 on…

Al011022.pdf…

13 12, 2021

Daily121321

Arezou Rafikian2023-05-23T12:37:24-04:00December 13th, 2021|2- Daily Briefing|

FSB Assesses Bail-in Bonds
The FSB today issued an assessment of cross-border TLAC at GSIBs, setting no new global policy. Instead, the paper analyzes TLAC in individual jurisdictions and studies the extent to which bail-in bonds – a controversial capital buffer – may prove effective under stress.

BIS: PE, VC May Pose Systemic Risk
With nonbank lending now growing faster than that at banks, we turn to another BIS policy-making paper. Joining those on DeFi and open-end funds, this one concludes that the shift of financial intermediation to “private capital” may pose systemic risk due to portfolio correlations at yield-chasing institutional investors such as pension funds and life insurers.

Daily121321.pdf…

22 10, 2021

GREEN11

Arezou Rafikian2023-06-05T15:21:03-04:00October 22nd, 2021|5- Client Report|

FSOC Treads Cautious Middle Path on Climate-Risk Action

As we noted yesterday, the Financial Stability Oversight Council has now complied with President Biden’s executive order (see FSM Report GREEN8), compiling an exhaustive assessment of the financial-stability implications of climate risk and what might best be done about it. Other than administrative action in areas such as procurement, the Biden order actually mandated little specific action, a stance dictated not only by the independent charters of key financial agencies, but also Treasury’s hesitancy to press near-term stress tests, capital buffers, or other hard-wire interventions.

GREEN11.pdf…

18 10, 2021

FedFin on: Global MMF-Reform Options

Arezou Rafikian2023-06-07T15:52:59-04:00October 18th, 2021|The Vault|

Global regulators have now finalized a framework on which national regulators may base the reforms they deemed necessary after the pandemic sparked profound disruptions in this sector. However, as with the FSB’s proposed approach, the final framework sets few parameters for jurisdictional action beyond a strong plea for action of some sort that would meaningfully address the redemption and/or liquidity risk the FSB continues to believe presents a threat to national and even global financial stability.

The full report is available to retainer clients. To find out how you can sign up for the service, click here.…

18 10, 2021

MMF18

Arezou Rafikian2023-06-07T15:53:11-04:00October 18th, 2021|1- Financial Services Management|

Global MMF-Reform Options

Global regulators have now finalized a framework on which national regulators may base the reforms they deemed necessary after the pandemic sparked profound disruptions in this sector. However, as with the FSB’s proposed approach, the final framework sets few parameters for jurisdictional action beyond a strong plea for action of some sort that would meaningfully address the redemption and/or liquidity risk the FSB continues to believe presents a threat to national and even global financial stability.

MMF18.pdf…