Fed report explores risk sensitivity benefits in bank capital requirements
By EsqSocial Corporation 07/04/25
On March 28, the Fed released a report titled “Outlining and Measuring the Benefits of Risk Sensitivity in Bank Capital Requirements” evaluating the integration of risk regarding bank capital requirements. The report asserted banks, particularly the largest banks, have incentives to operate with “lower capital ratios than would be socially optimal” due to deposit insurance and government guarantees, which can lead to adverse outcomes....
By: Orrick, Herrington & Sutcliffe LLP