Bulletin
Investor Alert

New York Markets Open in:

Market Pulse Archives

Nov. 11, 2019, 8:15 a.m. EST

Boston Fed's Rosengren says capital buffers on banks should be increasing

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

By Steve Goldstein

Boston Fed President Eric Rosengren told a conference in Oslo that capital buffers should be rising for big banks, not just in the U.S. but also Japan and Europe. "I am not sure that recent developments and proposals in bank regulation properly reflect the risks we are likely to face in a low interest rate environment that challenges bank profitability and provides less by way of monetary policy buffers. Specifically, capital buffers should be rising now so that there is more room for them to decline if the economy falters. While this is true for the United States, it may be even more true in Japan and Europe," he said. Only the Fed board of governors get to vote on capital buffers, so Rosengren doesn't have a say on U.S. buffers. The Fed in March voted to keep the countercyclical capital buffer at zero.

This Story has 0 Comments
Be the first to comment
More News In
Economy & Politics

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.