The U.S. Department of the Treasury issued its first in a series of reports to President Donald J. Trump examining the financial regulatory system in the United States. The report details executive actions and regulatory changes that can be immediately undertaken and focuses on solutions the Executive Branch can execute through regulatory changes and executive actions.
This report, and the subsequent reports, will identify any laws, treaties, regulations, guidance, reporting, record keeping requirements, and other government policies that inhibit Federal regulation of the U.S. financial system in a manner consistent with the Core Principles, which were set forth in the Executive Order 13772 on February 03, 2017. The principles promote American competitiveness, both at home and abroad, while making regulation efficient, effective, and appropriately tailored. The U.S. Treasury Secretary Steven T. Mnuchin said, “Properly structuring regulation of the U.S. financial system is critical to achieve the administration’s goal of sustained economic growth and to create opportunities for all Americans to benefit from a stronger economy.” The report detailed the following findings:
Community financial institutions—banks and credit unions—are critically important to serve many Americans
Capital, liquidity, and leverage rules can be simplified to increase the flow of credit
Global competitiveness of banks in the United States must be ensured
Improving market liquidity is critical for the U.S. economy
The CFPB must be reformed
Regulations need to be better tailored, more efficient, and effective
Congress should review the organization and mandates of the independent banking regulators to improve accountability
As a next step, the Treasury and the Administration will begin working with Congress, independent regulators, the financial industry, and trade groups to implement the recommendations advocated in the report through changes to statutes, regulations, and supervisory guidance. Subsequent reports will be issued over the coming months and will focus on markets, liquidity, central clearing, financial products, asset management, insurance, and innovation, among other key areas.
Keywords: America, USA, Banking, Securities, US Treasury, US Regulatory System, Core Principles, Insurance
Previous ArticleEBA Consults on Significant Risk Transfer in Securitization
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
Financial policymakers and international standard-setters met virtually with private-sector executives to discuss international policy responses to COVID-19 pandemic.
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA published thematic note presenting a preliminary assessment of the impact of COVID-19 outbreak on the banking sector in EU.
HKMA published a circular, addressed to authorized institutions, on the application of the Basel Committee guidance on certain COVID-related measures.
PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.
PRA published final policy (in PS13/20) setting out the approach and expectations for authorization and supervision of insurance special purpose vehicles (ISPVs or insurance SPVs).
BoE published version 2.0.1 of the Capital+ XBRL Utility, along with the related release notes.
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.