Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

Crypto theft booms to a record amid kidnappings, Bybit hack

July 18, 2025

Fifth Third awaits stablecoin legislation with high hopes

July 18, 2025

The Secret to Selling Faster Today

July 18, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Smart SpendingSmart Spending
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
Smart SpendingSmart Spending
Home»Banking»Top Treasury official wants to ‘Americanize’ any Basel rules
Banking

Top Treasury official wants to ‘Americanize’ any Basel rules

June 21, 2025No Comments3 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Top Treasury official wants to ‘Americanize’ any Basel rules
Share
Facebook Twitter LinkedIn Pinterest Email

Stefani Reynolds/Bloomberg

The Treasury Department is working with the bank regulators to finish the U.S.’s Basel committee-pursuant capital standards with an eye to clearing obstacles for American firms and “harmonizing” regulation of the financial system, the deputy secretary said Friday.

Michael Faulkender said parts of the capital framework issued by the Basel committee would be considered, but that U.S. regulators must ensure any capital regulations are “Americanize[d].”

“The U.S. financial system was built around … lending to individuals and businesses,” Faulkender said in remarks delivered at the Council on Foreign Relations. “If we lose one of the important strengths of our economic system by moving more toward financing government and inadvertently decrease the funding availability to individuals and businesses, that would be detrimental … so there are important strides that Basel made, but there are other areas where we just don’t think that it’s going to be appropriate.”

The agency is tapping Secretary Scott Bessent’s authority to convene regulators as leader of the Financial Stability Oversight Council, according to Faulkender. Acting Comptroller of the Currency Rodney Hood, Federal Deposit Insurance Corp. Chair Travis Hill and newly confirmed Federal Reserve Vice Chair for Supervision Bowman are working with the Treasury bank capital standards, Faulkender said.

The Trump administration aims to unburden the system without sacrificing safety and soundness. Overregulation, Faulkender said, discourages banks from making less lucrative loans in response to having to put up a higher level of equity.

“Capital is the ultimate kind of shock absorber when it comes to the financial system,” he said. “On the other hand, to the extent that the capital requirements are excessive, that is capital that is off the table and not being used to facilitate Main Street activity.”

See also  Treasury Bills vs. High-Yield Savings Accounts

Faulkender also said excessive regulation could unintentionally push financial activity into the nonbank sector where oversight is more opaque, systemic risk is harder to keep tabs on and whose inner workings the government is less primed to address. Instead of expanding regulation to cover these shadow markets, he said, the U.S. government should help banks remain competitive.

“If all this capital has escaped into the shadows, rather than bring the shadows into a regulatory oversight, how about we just make the regulated space work better, such that the capital doesn’t flee in the first place,” he said.

The official’s comments Friday echo Treasury Secretary Bessent’s remarks at the Milken Institute Global Conference in May. Bessent said private credit’s growth was evidence of excessively onerous regulation on banks and called for a “re-leveraging [of] the private sector.”

Faulkender also previewed changes to a key anti-money-laundering standard. The $10,000 transaction reporting threshold set in the 1970s is outdated, he said. More broadly, he pushed for a risk-based compliance approach and criticized the current exam framework as too costly for U.S. institutions. 

“If you modernize the Bank Secrecy Act, but you do nothing about the examination process that’s used to ensure compliance … you haven’t actually addressed this bureaucratic cost structure that drives up the cost of financial services, and for some Americans, drives them out of financial services because it’s too expensive to provide it to them,” Faulkender said. “So if we want to address underbanked and unbanked Americans, then we need to look comprehensively at all of the things that are driving up the cost of providing financial services.”

See also  Survey finds small-business confidence on upswing

Source link

Americanize Basel Official Rules Top Treasury
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleMastering The Save Versus Give Paradox
Next Article Fed Governor Waller says central bank could cut rates as early as July

Related Posts

Fifth Third awaits stablecoin legislation with high hopes

July 18, 2025

As banks embrace crypto, a defense blueprint is born

July 18, 2025

Citizens announces AI-driven ‘reimagining’ of the bank

July 17, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Meta expands data agreement with British banks to reduce online fraud

October 12, 2024

Repayment Assistance Plan May Make Student Loan Bills Soar

May 1, 2025

APM’s Self-Employed Mortgage Programs and Solutions

April 16, 2025
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

Crypto theft booms to a record amid kidnappings, Bybit hack

July 18, 2025

Fifth Third awaits stablecoin legislation with high hopes

July 18, 2025

The Secret to Selling Faster Today

July 18, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 Smartspending.ai - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.