The GSIB Score and Business Lending: No Good Deed Goes Unpunished
In this post, we call attention to the negative incentives to lend and support the economy that are embedded in the GSIB capital surcharge.
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Serving as the official blog of the Financial Services Forum, BankNotes is where our team analyzes and discusses the latest proposals, ideas, and news surrounding our eight member institutions, the U.S. financial sector, and the economy. Our goal is to provide thoughtful insights on the issues impacting the eight largest and most diversified U.S.-based financial institutions, as we promote policies that support savings and investment, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.
The nation’s banking sector, including the largest banks, have played an important role in supporting businesses and households during the COVID-19 pandemic, the Federal Reserve said on Friday. In its regular Supervision and Regulation report, the Federal Reserve Board also noted the continued strength of the sector and the importance of bank programs to assist borrowers during these difficult times.