FDIC’s Hoenig warns on relaxing bank capital requirements
Big banks are less well capitalised and dedicate a higher share of their income to dividends
Thomas Hoenig has warned against diluting post-crisis regulations, rejecting the claim expressed among others by US president Donald Trump that higher capital requirements hamper economic growth.
The vice-chairman of the US Federal Deposit Insurance Corporation (FDIC) makes the warning in a letter to the Senate banking committee, dated July 31.
“The ‘Global Capital Index’, created by the FDIC in 2013, provides a direct comparison of bank capital positions. This index has consistently shown
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