Fed should supervise foreign banks like their U.S. counterparts
Foreign banks, like their domestic counterparts, play a critical role in the United States’ financial system. They hold more than $5 trillion — or one-fifth — of total banking assets; provide one-third of small-business loans; and finance more than one-third of infrastructure projects. And, as with U.S. firms, the 2008 financial crisis exposed the vulnerabilities of foreign banks’ risk management procedures.
Yet, despite their similarities, the largest foreign banks are not subject to the same oversight as their U.S. peers.
The above excerpt was originally published in American Banker. Click here to view the full article.
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Senior Policy Analyst, Financial Regulation and Corporate Governance