麻豆传媒

The announcement on Thursday, Oct. 27 by U.S. regulators to  for banks with assets of $100 billion or more is designed to address evolving international standards and the recent regional banking crisis.

In response, , executive-in-residence and professor of the practice for the University of Maryland’s Robert H. Smith School of Business, says:

“Whenever a bank crisis ensues, expect regulators to go to their tried-and-true playbook of raising capital on the industry. In the wake of the spring banking turmoil, including banks with assets between $100-$250 billion under the new rules will ultimately strengthen the financial system. 

While the increase in capital is significant for the largest firms, the phase-in period and already substantial capital buffers built by these firms should have limited impact on curtailing lending activity.

That said, capital is not a surrogate for good risk management practices and governance which were surely lacking at the banks that failed earlier this year and were the primary catalyst in their demise. I would expect to see regulators significantly elevate their examination activities of these institutions going forward.”

Rossi, director of the newly launched , has had nearly 25 years’ experience in banking and government, having held senior executive roles in risk management at several of the largest financial services companies. 

He can be reached via [email protected] to expand on his statement above.