Fed mulls easing foreign banks’ TLAC rules
Foreign banks operating in the US could be allowed a more flexible funding structure, according to Randall Quarles, Federal Reserve vice-chairman for supervision. It could lower the cost of trapping liquidity and capital instruments in the intermediate holding companies (IHCs) they had to set up to keep operating in the US.
Quarles, in a speech on Wednesday entitled 'Trust everyone — but brand your cattle', signalled that US requirements for internal total loss-absorbing capacity (TLAC) could be adjusted towards the levels other regulators require, potentially prompting a more flexible international regime.“We continue to believe that the IHC ...
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: firstname.lastname@example.org