Financial Regulatory Forum

Low interest rates can pose safety-and-soundness issues, state bank regulator says

By Ted Knutson

WASHINGTON, July 19 (Thomson Reuters Accelus) - The low interest rate environment being pushed by the Federal Reserve can pose safety and soundness issues for some banks, Michael Stevens, senior executive vice president of the Conference of State Bank Supervisors, told Thomson Reuters Accelus Wednesday.

“Low interest rates are a supervisory concern because they can have a corrosive effect on net interest margins, which impacts profitability, which impacts capital formation, which affects the ability to lend more and to grow,” said Stevens. (more…)

US Senate bill would let FDIC wind down big banks

Federal Deposit and Insurance Corporation (FDIC) Chairman Sheila Bair WASHINGTON, July 30 (Reuters) – Two U.S. senators introduced legislation on Thursday that would give the Federal Deposit Insurance Corp the power to wind down bank holding companies, calling it an interim step until Congress approves broad financial regulatory reforms.

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