William Isaac’s Post

Banking regulators have proposed a sweeping set of changes after higher interest rates and deposit runs triggered the collapse of three midsized banks this year. The moves broadly take measures that applied to the biggest global banks down to the level of institutions with at least $100 billion in assets, increasing their compliance and funding costs. #banks #consolidation #occ #fdic

Strong capital ratios alone cannot prevent bank failures, as recent experience has repeatedly shown. Hence the need for regulators to come up with more sophisticated measures of overall risk assessment for banks - inputs could include market capitalisation, “culture ratio”, gender diversity of their risk committees. #banking #usbanks

#commercialbanking is at the forefront of economic activity. Recent high-profile bank failures in the #us have prompted regulators to draft a proposal on new #capital requirements for medium and large banks. We take a look at the proposed changes and their effect on the #banking sector, #lending, #dealmaking and the US economy. Check it out!

Great thought leadership by Ira Robbins on the trend of nonregulated private lenders. When deposits are drained out of regional banks, which are the fuel for local economy entruerprenuership, into fintechs funneling liquidity into non bank private investment funds we ruin our job creating economy. Choose Main Street or Wall Street. #sharedvalues #impactinvesting #sustainablecommunities Ellavoz Impact Capital chooses Main Street.

'I fundamentally reject the idea that banks can’t increase their capital levels... Increased capital means it doesn’t matter so much about spotting little pockets of risk here or there, or playing catch-up. You get a more resilient system, full stop,' says our Director, David Aikman, in this latest from The Banker. 🔎Read more from Amalia Illgner⬇ https://lnkd.in/eWyBEgjF #Banking #FinancialRegulation

The U.S. banking regulators stress testing scenarios for 2024 are out. Find out how the FED, FDIC, and OCC are preparing banks for potential economic downturns. Read more: https://mdy.link/43z0m67 #RegulatoryNews #Banking #StressTesting #Scenarios

The collapse of several of our peers in the regional banking sector has put a spotlight on our industry over the past year. But the truth is that an overwhelming majority of regional banks remain fundamentally sound and continue to serve as a critical growth engine for communities all across the country. Unfortunately, what I haven’t heard a lot about are the risks posed by the highly unregulated and far less-scrutinized non-bank financial companies that comprise the shadow banking industry. I recently shared my thoughts on the explosive growth of this industry and the underlying threats they pose to American taxpayers in an op-ed published by American Banker. https://lnkd.in/ehu3kdyW

I absolutely agree, it's disheartening to see misconceptions around regional banks persist. Kudos for shedding light on the importance of accurate information. We have to ensure fair and consistent regulations across the financial sector, including NBFIs, to protect investors and taxpayers. Let's focus on real threats and maintain transparency. Thanks Ira Robbins for raising awareness of this important issue. 👏 #FinancialSector #Regulation #Transparency

My two cents on the 'Regional Banking Crisis 2.0', which is not regional, by the way, is not that it will bring down the current financial system or transform into a systematic banking risk. Because central banks can cut rates by percentage points from current levels, which would immediately remove one key source of banking troubles, high interest rates. More likely is that smaller banks are forced into the arms of bigger banks. New York Community Bank buying Signature assets before drowning in bad loans is a writing on the wall. Bigger, more concentrated banks reduce competitiveness, resulting in higher prices for consumers. It also increases the odds that big banks will become 'too big to fail,' causing various moral hazard issues. In addition, it will amplify the Cantillon Effect, which states that those closest to new money created by central banks will profit most, at the expense of those 'receiving' the new money later when inflation has already spiked. Hence, (even) bigger banks increase the uneven wealth distribution of new money created.

A Banking Crisis Could Be Closer Than You Think https://lnkd.in/gVJctyuT Professors studied 2000 bank crises since the 13th century. Last year's matched those that were more severe than average - unfolding over 3 years. #harvardgoldgroup #gold #bankingcrisis