IIF Response to Federal Reserve Vice Chair Michael Barr's Remarks on Bank Capital
July 10, 2023
Today, Institute of International Finance (IIF) CEO and President Tim Adams issued the following statement in response to remarks by Federal Reserve Vice Chair for Supervision Michael Barr:
“The financial system has proven it is resilient and well-capitalized. With the economy still processing historic shocks and a potential slowdown looming on the horizon, constraining the financial sector’s capacity to support growth and economic activity – especially at this moment -- is puzzling and counterproductive. Through lending and vibrant capital markets, the financial sector is critical for economic growth, capital formation, job creation and prosperity.
The final set of Basel III changes was not intended to increase capital requirements. Effective regulation should be fit for purpose, reflecting the dynamic and ever-evolving competitive environment in which financial institutions operate.
We look forward to reviewing and responding to the U.S. Federal Reserve’s holistic review of bank capital requirements once it is made available.”
About the Institute of International Finance (IIF): The Institute of International Finance (IIF) is the global association of the financial industry, with about 400 members from more than 60 countries. The IIF provides its members with innovative research, unparalleled global advocacy, and access to leading industry events that leverage its influential network. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. IIF members include commercial and investment banks, asset managers, insurance companies, professional services firms, exchanges, sovereign wealth funds, hedge funds, central banks and development banks. To learn more about IIF, please visit www.iif.com, follow us on Twitter, LinkedIn or YouTube, or check out IIF’s podcasts.