In the News

• Financial Trade Associations Ask Bank Regulators to Reconsider NSFR

  August 08, 2016

  The Clearing House, along with the Securities Industry and Financial Markets, Financial Services Roundtable, American Bankers Association, Institute of International Bankers and  CRE Finance Council submitted a comment letter to bank regulators Friday on the proposed Net Stable Funding Ratio (“NSFR”) rule.  In the letter, the Associations express continued support for the maintenance of stable funding and liquidity profiles by banks, but urge that the NSFR not be implemented in the United States without an analytically sound rationale that considers its marginal benefits and economic costs.

• Custody Services Provided by Banks are Important to the Safekeeping and Management of Investments

  July 28, 2016

  The Clearing House today issued a white paper, The Custody Services of Banks, which describes the role of bank-chartered custodians.  The paper discusses the services provided by bank-chartered custodians, their relationships with financial market utilities (FMUs), and describes the different risks associated with custody services in comparison to those associated with other banking activities.

• New eighteen53 Blog to Provide Industry Insights and Analysis on Payments and Bank Regulation

  July 14, 2016

  The Clearing House (TCH) today announced it has launched a new blog which will focus on payments issues, bank regulation, and original research and analysis.

• U.S. Banking System Does Not Need Even More Capital TCH General Counsel Tells House Committee

  July 12, 2016

  Jeremy Newell, General Counsel of The Clearing House Association (TCH), testified today before the House Financial Services Committee at a hearing focused on the tradeoffs in using a leverage ratio to assess capital adequacy as proposed in the discussion draft of the Financial CHOICE Act recently released by Chairman Hensarling.

• NSFR is an Unreliable Guide to Banks’ Liquidity Situation and Could Restrict Credit Availability

  July 05, 2016

  In a new research note, The Net Stable Funding Ratio: Neither Necessary nor Harmless, The Clearing House finds the Net Stable Funding Ratio (NSFR) has no clear, defining objective and its benefits are in doubt while its economic costs may be substantial.

• Large Banks Could Become “Systemic Maginot Line” TCH President Says in Congressional Testimony

  June 23, 2016

  Greg Baer, President of The Clearing House Association (TCH), today testified before the Senate Committee on Banking, Housing and Urban Affairs at a hearing focused on bank capital and liquidity regulation.

• Industry Files Comment Letter on Standardized Measurement Approach to Operational Risk

  June 06, 2016

  In the letter, to the Basel Committee on Banking Supervision, the associations affirmed their support for the proposed withdrawal of the Advanced Measurement Approach framework.  The letter also offered recommendations on changes that would make the proposed standardized measurement approach more risk-sensitive and reflective of the current banking operational risk environment.

  
  

• Single-Counterparty Credit Limit Reproposal Could Be Further Improved

  June 06, 2016

  The letter to the Federal Reserve on its reproposal of the single-counterparty credit limit (SCCL) requirement of the Dodd-Frank Act, notes substantial improvements included in the March 2016 reproposal, and details some problematic aspects that still remain that could make the rule needlessly difficult to implement and in some instances unworkable.

• Clearing Members Analyze the Resolution of Central Counterparties in New White Paper

  May 24, 2016

  The Clearing House and the International Swaps and Derivatives Association today issued a white paper identifying key issues that regulators should consider as they develop a comprehensive resolution framework for systemically important CCPs.

• The Clearing House Releases Report on the Core Functions of the Board of Directors

  May 06, 2016

  The Clearing House (TCH) issued a report, The Role of the Board of Directors in Promoting Effective Governance and Safety and Soundness for Large U.S. Banking Organizations, to serve as a resource to both banks and their supervisors about the respective roles of directors and management.  The report highlights the growing responsibilities and emphasis being placed on banking organizations’ board of directors by U.S. regulators.  It also provides recommendations to regulators on how best to address what is often seen as a divergence between the role of the board, which is one of oversight, and regulatory compliance-related expectations for directors which at times may overlap with management’s responsibility.