Treasury Department’s Research Office Sees Need for Higher Capital Requirements
On February 12th, the Treasury Department’s Office of Financial Research published a paper analyzing new data about the most systemically important bank holding companies. The paper finds that although the largest banks satisfy international standards for riskbased capital, including a new capital buffer for global systemically important banks, these same institutions have relatively low leverage ratios compared to smaller banks. The authors therefore conclude that higher riskbased capital requirements for the largest institutions “could enhance the resilience of the financial system.” OFR Press Release.
On February 9th, the Consumer Financial Protection Bureau published a consumer advisory on reverse mortgages. CFPB Press Release.