Fed’s Emergency Capital Relief For Big Banks To End This Month

0
25
imageEconomy4 hours ago (Mar 19, 2021 13:20)

© Reuters.

Dhirendra Tripathi

Investing.com – The Federal Reserve’s emergency capital relief for big banks, a measure announced last year to contain the Covid-19 damage to the economy, is to end.

The Federal Reserve today said the temporary change to its supplementary leverage ratio, or SLR, for bank holding companies will expire as scheduled on March 31.

To ease strains in the Treasury market resulting from the Covid-19 pandemic and to promote lending to households and businesses, the Board had temporarily modified the SLR last year to exclude U.S. Treasury securities and central bank reserves from capital requirements calculations. 

On Friday it said that since that action, the Treasury market has stabilized. 

The Fed said it will take appropriate actions to assure that any changes to the SLR don’t erode the overall strength of bank capital requirements.

The SLR was established in 2014 as a backstop capital requirement in the wake of the Great Financial Crisis to stop banks from gaming a system of capital requirements with their own internal risk models. 

Fed’s Emergency Capital Relief For Big Banks To End This Month

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

LEAVE A REPLY

Please enter your comment!
Please enter your name here