(Washington) Several members of the Federal Reserve Board (Fed) underlined their disagreements on Thursday over proposals concerning the regulation of the banking sector, during a rare public meeting.
The proposals, presented on July 10 by Fed Vice President Michael Barr, include strengthening the capital of banks, including those of intermediate size, and changes to the way they quantify their risks.
These proposals, which have been mooted for some time, gained prominence with the crisis in the American banking sector in March, which saw the collapse of several regional banks in the wake of the collapse of Silicon Valley Bank (SVB ).
“The objective of these proposals is simple: strengthen the banking system and its resilience with better risk awareness,” Mr. Barr explained during the meeting.
An opinion that is not shared by two other members of the council, Michelle Bowman and Christopher Waller. They made this known in an unusual public statement, specifically opposing a 16% average increase in required capital.
Ms. Bowman feared in a statement that these proposals “add to the difficulties already facing the American banking system and inflict real costs on banks, their customers and the economy without proven benefit for soundness and security or stability. financial”.
“I don’t think these costs are worth it without clear benefits in terms of the soundness of the financial system,” Waller said in a written response to the proposals.
Institution President Jerome Powell favored a public hearing during the unusually long 120-day proposal review period.
“Congress and the American people rightly expect us to put in place a regulatory regime that is both efficient and effective, without adding more burden than necessary,” he said in a statement. communicated.
“I look forward to hearing from all stakeholders on the best approach to strike that balance,” Mr. Powell added.
