Fed should supervise foreign banks like their U.S. counterparts

Lilith Fellowes-Granda argues that, for the sake of financial stability, the Federal Reserve should supervise foreign banks as they do their U.S. counterparts.

Building an Economy for All, Economic Development and Governance, Economy, Finance Reform, International Issues +2 More

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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