Fed tracking other nations’ use of countercyclical buffer against busts, Quarles says

1 April 2019 8:58pm
The US is watching how well countercyclical buffers are working in countries that adopted them to protect against inevitable downturns to see if the US Federal Reserve should re-evaluate not activating this bank capital framework, Fed Governor Randal Quarles said.

He expressed particular interest in the UK’s approach, which he said has given policymakers additional flexibility and tools to possibly react more quickly to economic shocks.

“The CCyB is a novel approach to financial regulation, and I think it is important that we, as regulators, learn from other countries’ experiences with the CCyB,” Quarles, the Fed’s vice chairman of supervision, said Friday.