The Congressional Research Service prepared a detailed summary and analysis for legislators on the banking regulators' proposed "Regulatory Capital Rule: Amendments Applicable to Large Banking Organizations and to Banking Organizations with Significant Trading Activity."
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The Congressional Research Service reviewed (i) how proposed amendments to bank capital rules would change the capital treatment of unrealized losses on the debt securities that large banks hold as assets and (ii) policy considerations on unrealized capital losses post the collapse of Silicon Valley Bank.
The Congressional Research Service found that "binding" leverage requirements on large banking organizations may be "incentivizing behavior counter to financial stability."
In a working paper titled "Digital Currency and Bank Sector Stability," the Office of Financial Research found that when banks face financial friction, a central bank digital currency and other types of stablecoins would likely contribute to financial instability and increase the chances for banking sector crises and financial system distress.
The Financial Stability Oversight Council reviewed a proposed regulatory capital framework by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac.