Foreign banks' requirements under Volcker Rule should be reined in, FDIC chief says

13 March 2019 9:28am
The overseas scope of the Volcker Rule should be narrowed to limit its impact on foreign banks with US operations, said Jelena McWilliams, the head of the US Federal Deposit Insurance Corp.

“The Volcker Rule's extraterritorial reach should not prohibit activities that are clearly not governed by US rules,” she said at a conference* in Washington yesterday. “This should help to provide a level playing field between domestic and foreign banks when the activity has no implications for the banking system, insured depositors, or taxpayers here in the United States.”

McWilliams said that for offshore funds, regulators will consider ways to simplify the standard’s requirements and ease its “operational burdens.”