Senate Banking Committee Members Want Transparency before FRB Considers Changes to Capital Standards Framework

Senate Banking Committee Member Thom Tillis (R-NC), joined by Republican committee members, requested that the Federal Reserve Board ("FRB") publicly release materials pertaining to its "holistic review" of capital requirements and other supporting documentation ahead of any policy changes.

In a Letter addressed to FRB Chair Jerome Powell, the Senators urged transparency following the FRB's review of capital for large banks and subsequent recommendations for bank resolution reforms (see previous coverage).

The Senators stated that it is "highly concerning" that the FRB may begin voting on related policy changes without making the results of the evaluation publicly available. The Senators requested that the FRB release: (i) any documents relating to FRB Vice Chair for Supervision Michael S. Barr’s "holistic review" and (ii) the full text of any proposed changes to the capital standards framework "sufficiently prior to a vote," and ensure that all FRB members have time to review the proposals prior to the vote. The Senators requested a response from the FRB no later than August 4, 2023.