In its supervision and regulation report, the US Federal Reserve Board said US banks remain strong and well positioned for any downturn, though one think-tank thought the central bank did not dig deep enough into potential problem areas. 

Despite the US Federal Reserve Board’s actions to stabilise the repo markets, rates are likely to spike again at year end due to the global systemically important bank (G-SIB) capital surcharge, said the Bank Policy Institute (BPI)

The European Parliament has approved new commissioners who will support European Commission president Ursula von der Leyen in her mission to tackle climate change and to increase EU power. 

In a speech about Europe’s capital markets, European Commission vice-president Valdis Dombrovskis discussed the new commission’s priorities for sustainable and green finance. 

Citigroup has been hit with a £43.9m ($56.6m) fine by the UK’s Prudential Regulation Authority (PRA) for failings in their regulatory reporting governance and controls. 

In many circumstances, principles-based regulation can be more effective for overseeing financial services in a technological environment than highly prescriptive rules, wrote Heath Tarbert, the chairman and CEO of the US Commodity Futures Trading Commission (CFTC). 

Large, internationally-active banks should replace the current exposure methodology with the standardised approach for measuring counterparty credit risk (SA-CCR), which smaller banks can voluntarily adopt, three federal agencies said in a statement.

The Federal Reserve Board proposes extending by 18 months the initial compliance dates for foreign banks to come under its single-counterparty credit limit rule.

US federal prudential agencies have signed-off on changes to the supplementary leverage ratio as required by the Economic Growth, Regulatory Relief, and Consumer Protection act.