Overseas banks call for tabling of US Fed's 'stress capital buffer' plan

3 July 2018 7:27am
Foreign banks with US operations said that the US Federal Reserve’s proposal to base a large firm’s capital requirements on its stress test results should be shelved until more performance data is available for offshore institutions.

The Fed’s calibrations for its “stress capital buffers” would be based primarily on US banks’ performance during nearly a decade of these annual tests, the Institute of International Bankers said.

In contrast, many foreign banks with US units participated in publicly disclosed tests for the first time this year, the group’s letter said.