Experts split on impact of Fed’s new Basel III proposal
Economists divided over financial stability ramifications of vice-chair’s new capital ratios plan
Experts are split on the impact Michael Barr’s revised capital requirements plan might have on financial stability.
The US Federal Reserve’s vice-chair for supervision announced the new proposals on September 10. Although critical details are still absent – Barr has said the full plan will be released soon – the provision that received the most attention was the 9% requirement for the largest banks, down from 19% a year ago.
Many of the plan’s opponents say lobbying efforts by banks, including a
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