The US Federal Reserve has moved too quickly to dial back post-crisis capital requirements, Esther George, head of the US Federal Reserve Bank of Kansas City, said today.
George, one of 12 regional Fed presidents, acknowledged that banks hold more capital today than they did before the crisis but said her “preference would have been to see this through a cycle before we began to adjust this.”
“There is nothing that really protects depositors, protects the public, more than hefty capital,” she told bankers at a Washington conference.
George also suggested that the largest banks should be required to hold more capital, or equity, to ensure they can avoid insolvency during an economic downturn.
Fed eases Dodd-Frank standards too quickly, Fed regional bank head says
3 April 2019 9:13pm