WASHINGTON (Reuters) – The Federal Reserve’s top regulatory official said Friday that bank supervisors have been flagging problems at banks at a higher rate in the past year, and are “closely focused” on how firms are managing commercial real estate risk.
Fed Vice Chair for Supervision Michael Barr added that supervisors were also conducting additional exams at firms with large unrealized losses, nearly one year after that issue helped sink Silicon Valley Bank.
He said the Fed was also still considering whether to require firms with risk management issues to temporarily face higher capital and liquidity requirements until those issues were addressed.
(Reporting by Pete Schroeder; Editing by Gareth Jones)
Comments