Sarah Flowers, Senior Vice President and Head of Capital Advocacy at the Bank Policy Institute (BPI), has responded to a recent speech by Federal Reserve Governor Michael Barr at the Peterson Institute for International Economics regarding stress testing for banks.
In her statement, Flowers criticized Governor Barr's suggestion to move away from the current transparent and publicly reviewed stress test process. She said, "In his remarks today, Governor Barr proposes to abandon the Board’s current path towards a transparent and publicly reviewed stress test in favor of a black box, where capital increases are imposed in secret and subject to no governing standard or due process. We continue to believe that this approach is poor policy and not consistent with the law or the Board’s recent commitments to the public and a federal court. Capital requirements influence the cost of living for American consumers and businesses, making it critical to shed light on how those requirements are set."
The BPI is an organization that represents universal banks, regional banks, and major foreign banks operating in the United States. It conducts research on regulatory and monetary policy issues, provides analysis on proposed regulations, and advocates for industry positions related to cybersecurity, fraud prevention, and information security.
For further information, Austin Anton at BPI can be contacted via email at austin.anton@bpi.com.