#risk based capital

Eliza Allen2022-10-21T16:31:13-04:00October 21st, 2022|2- Daily Briefing|

Ginnie Gives Ground on Controversial RBC Requirements

Following its long-delayed release of eligible seller-servicers standards with FHFA, Ginnie Mae announced today that it is extending by one year its mandatory compliance date for the new risk-based capital standards. The announcement cites stakeholder feedback and evolving market dynamics –doubtless the economic downturn and concerns about procyclicality – in the agency’s decision for this extension, which sets a new RBC implementation date of December 31, 2024.

BIS Unveils Two-Tier CBDC Prototype

Reflecting the BIS’ preferred two-tier CBDC structure (see Client Report CBDC6), the BIS today announced the launch of a prototype two-tier retail CBDC called Aurum comprised of a wholesale interbank system and a retail e-wallet. The wholesale interbank system is designed to ensure that banks do not issue more retail CBDCs than the wholesale CBDCs that the bank owns or double issue the same wholesale CBDC asset as a retail CBDC asset. This system also tracks unspent transaction output, allowing users to prove ownership even if an issuing bank has ceased operations.

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Arezou Rafikian2023-04-04T15:08:38-04:00February 25th, 2022|2- Daily Briefing|

CFPB Targets Auto Lending for Competition Make-Over

Late yesterday, the CFPB outlined the steps it plans to take to ensure that auto lending is fair and competitive. This initiative mirrors others (see FSM Report CONSUMER38) in which the Bureau seeks to deploy its consumer-protection powers to reshape markets.

Basel Plans Broad Digital, Crypto, Climate Work Plan

The Chair of the Basel Committee, Spain’s Pablo Hernández de Cos today reiterated that Basel now plans to press its final capital changes and work with other regulators to finalize climate risk standards. An array of “deep-dive analyses” are planned on fintech and cryptoassets, publishing initial conclusions on these topics and AI in “coming months.”

Fed Finds Financial Stability Just Fine, But That Was Then

The monetary policy report that Chairman Powell will deliver next week includes a slightly revised discussion of financial stability which does not take current geopolitical hazards into account.

FHFA Eases GSE Capital to Increase CRT

FHFA followed up sweeping action yesterday on mortgage servicers today with a finalized capital rule. As promised, the rule replaces the current fixed leverage ratio with a dynamic one designed to ensure that risk-based capital is the only binding constraint for Fannie Mae and Freddie Mac.

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