Whereas in previous years the bank CEOs used the hearing to highlight the industry’s good deeds, this year they warned about the potential dangers of over-regulating the industry. The banks are adamantly against a number of proposed regulations that could hit their profitability, including new rules from the Federal Reserve that would require big banks to hold additional capital on their balance sheets. The other seven CEOs were uniform in their comments in both their prepared remarks and answers to Senators’ questions. Three larger banks failed this year — Signature Bank, Silicon Valley Bank and First Republic Bank — after the banks experienced a run on deposits and questions about the health of their balance sheets. It is partly because of the bank runs at Silicon Valley Bank and First Republic this year that regulators have proposed more stricter regulations for banks with assets over $100 billion.

Source: Daily Nation December 07, 2023 00:53 UTC