Series 8, Episode 7: U.S. bank regulators step up stress testing post-SVB

U.S. banking regulators are homing in on more effective stress testing after admitting they were behind the curve in their supervision of Silicon Valley Bank.The bank collapsed in March, alongside Signature Bank, and was later joined by First Republic. Further problems are expected for smaller, regional banks, but regulators have to date seen off fears about a 2008-style financial crisis.In this episode of Compliance Clarified, Alex Robson, managing editor in London, is joined by Henry Engler, senior editor in New York. They discuss recent comments by Michael Barr, vice chair of supervision at the Federal Reserve, about the steps that regulators are taking. The U.S. central bank is at the beginning of exploring how it can move more swiftly when its supervisors spot problems at banks outside crisis periods, he said."We're not an institution that moves quickly on supervisory issues," Barr told a recent panel in New York.The Compliance Clarified podcast series covers a wide range of topics which affect compliance officers at financial institutions and aims to help them navigate the often challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging best practices.NY Fed official argues for tougher supervision after SVB collapse; bank executives need 'devil advocates' to challenge decisions (behind a paywall):http://go-ri.tr.com/D1HKvqhttps://www.newyorkfed.org/newsevents/speeches/2023/ost230617Federal Reserve’s review of Silicon Valley Bank failure (free to access): https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230428a.htmhttps://www.federalreserve.gov/publications/files/svb-review-20230428.pdfFed’s Jerome Powell on higher capital costs (free to access): https://www.reuters.com/business/finance/powell-strong-capital-is-central-importance-banks-2023-06-21/ Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.