Blog: Providing a more complete picture of credit supply from banks
Jul 26, 2017
In a recent speech, Nellie Liang, senior fellow at the Brookings Institution, reported evidence that she asserts demonstrates that high capital requirements and draconian stress tests are not constraining the provision of credit by banks in the United States. Ms. Liang overlooked some relevant data on this point that we provide below.
Blog: Fed Analysis of Optimal Bank Capital Does Not Properly Account for Post-Crisis Reforms
Jun 28, 2017
In calculating the optimal capital range, Fed analysis fails to comprehensively take into account the benefits to financial stability or the extensive reforms to bank regulation and supervision that have taken place since the aftermath of the global financial crisis.
Blog: The Leverage Ratio: Neither Simple nor Sensible
Jun 26, 2017
Renewed interest in the long-running debate over the value and appropriate role of the leverage ratio in bank capital regulation make this an opportune time to revisit key problems with the leverage ratio and flaws in the argument of those who support it.
Blog: Unlocking the Liquidity Coverage Ratio
Jun 7, 2017
The penalty and stigma associated with violating the Liquidity Coverage Ratio (LCR) creates a disincentive for banks to use High Quality Liquid Assets (HQLA) in times of stress and potentially causes banks to unnecessarily hoard liquidity.