Fed Vice Chair for Supervisions Remarks on Bank Capital: Eight Things To Know

Fed Vice Chair for Supervisions Remarks on Bank Capital: Eight Things To Know

July 14, 2023, Covington Alert

On Monday, July 10, 2023, Michael S. Barr, Vice Chair for Supervision of the Board of Governors of the Federal Reserve System, gave a speech detailing the results of a nine-month “holistic review” of capital for large banks and previewing changes to capital standards for large banks that he intends to pursue through the rulemaking process.

The OCC and the FDIC appear to be in step with the Federal Reserve on the changes Barr has described. On the same day as Barr’s speech, Acting Comptroller Mike Hsu said in an interview with the American Banker that the OCC is aligned with the other federal banking regulators with respect to enhanced capital requirements. In a speech given last month, FDIC Chair Martin Gruenberg strongly endorsed strengthening bank capital.

These are eight key takeaways from Barr’s speech.