Fed's foreign bank liquidity plan should draw on states' input, New York says

11 July 2019 8:15pm
The US Federal Reserve should hold off on proposing to extend liquidity requirements to foreign banks’ US branches until it consults with appropriate state regulators, the New York State Department of Financial Services said.

Some states, including New York, have licensing and supervisory authority over these foreign banking organizations’ branches to ensure repayment of depositors in a crisis, the recent letter to the Fed said.

“It is critical that the federal agencies consult and coordinate closely with all domestic and international regulatory agencies that have licensing and/or supervisory responsibilities over the branches and agencies of FBOs, including state licensing agencies,” New York state said.