Industry rejects Fed call for 26% capital ratio

Industry rejects Fed call for 26% capital ratio | Giancarlo: Banks' offshore branches need margin flexibility | Banks plan stock buybacks worth billions Created for {EMAIL} | [Web Version]( July 5, 2017 [SIGN UP]( ⋅ [FORWARD]( [] Risk Management and Insurance [] [Industry rejects Fed call for 26% capital ratio]( The Clearing House Association is concerned about a Federal Reserve working paper that calls for a Tier 1 Basel capital level of 13% to 26% of risk-weighted assets. "The question on the optimal level of capital in the banking system needs to take into account the post-crisis reforms, which have generally been left out of the Fed analysis," said Francisco Covas, senior vice president and deputy head of research at the association. [Risk (subscription required)]( (6/28) [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( [] [Giancarlo: Banks' offshore branches need margin flexibility]( J. Christopher Giancarlo, acting chairman of the Commodity Futures Trading Commission, said he wants to persuade US bank regulators to relax some of the margin requirements for derivatives trading that they impose on their foreign branches. He said swaps deals between big financial firms and their overseas affiliates were "not an issue in the financial crisis." [MLex (subscription required)]( (6/28) [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( [] [Banks plan stock buybacks worth billions]( Stress test passage by all major banks has triggered a string of stock-buyback and dividend announcements. Bank of America will buy back $12 billion in shares and raise its dividend 60%; Citigroup will conduct a $10.4 billion buyback and more than triple its dividend; and JPMorgan Chase will hold a $10.6 billion buyback and leave its dividend unchanged. [Market News International]( (6/28) [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( [] - [Research: Implications of collateral rules on buy side]( Bank of New York Mellon (6/2017) [] - [Changes coming to credit scores]( The New York Times (free-article access for SmartBrief readers) (6/26) [] Cybersecurity [] [How banks are adapting to compete with fintech]( With companies like SoFi and PayPal offering financial services, banks must innovate to attract consumers. Leigh Cuen examines some of the ways banks are making changes to compete in the "fintech arms race." [International Business Times]( (7/2) [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( [] [Criminals find new ways to clone credit cards]( Criminals are finding ways to clone credit cards besides skimming numbers at ATMs or gas stations. Police say cardholders should set up fraud alerts on their accounts and should check their balances often. [WFYI-TV/WFYI-FM (Indianapolis)]( (6/29) [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( [] Government Regulation [] [Fed economist floats alternative to standardized measurement approach]( Federal Reserve senior economist Marco Migueis has suggested the forward-looking and incentive-compatible approach to calculating operational risk capital requirements as an alternative to the Basel Committee on Banking Supervision's proposed standardized measurement approach. Under Migueis' approach, "banks would be allowed to estimate a portion of their capital requirement, but they would be given an incentive to have accurate estimation," he says. [Risk (subscription required)]( (6/29) [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( [] [US regulators' budget squeeze may hamper efforts]( The House Appropriations Committee has released its financial-services spending bill for fiscal 2018, which empowers Congress to assume control over federal regulators' budgets, leading to significant restraints on their capacity. As a result, regulators' efforts to implement laws such as the Dodd-Frank Act may be curtailed. [The Hill]( (6/28), [Politico Pro (subscription required)]( (6/28) [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( [] News from Aon [] [How emotionally fit is your workforce?]( Emotional fitness is becoming an area of growing concern, especially given health care costs are three times higher for patients with underlying behavioral health issues. Now is the time for your organization to prepare, and to build strategies to be a partner in behavioral health with your employees: Join Aon experts on Wednesday, July 12, to learn about the impact of emotional fitness in the workplace. We'll explore common organizational barriers to resolving emotional distress, framework to develop an emotionally fit workplace, ideas for low-cost, high-impact tactics organizations can implement today. [Register here](. [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( [] [In demand: The growth of the on-demand economy]( A car hailed, a room booked, a job filled -- all at the swipe of a finger. Welcome to the "on-demand" economy. Thanks to advancing technology and customers pushing for a better experience, old ways of doing business are being transformed. Following strong uptake by both workers and employers, investment in on-demand platforms such as Uber, Airbnb and Deliveroo has been enthusiastic. From transportation to accommodation, the on-demand model disrupts every sector it enters -- and has also created new ones. So, is this new economic model a fad or will it continue to improve the customer experience and become the norm? [Read more](. [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( Learn more about Aon Financial Institutions: [Aon Home Page]( | [Aon Financial Institutions]( [Thought Leadership]( | [Media Room]( [] [] Always dream and shoot higher than you know you can do. Don't bother just to be better than your contemporaries or predecessors. Try to be better than yourself. William Faulkner, writer [LinkedIn]( [Twitter]( [Facebook]( [Google+]( [Email]( About Aon Financial Institutions The Aon Financial Institutions Practice develops risk transfer and consulting solutions for a wide range of businesses including banks, insurance companies, asset managers and diversified investment and finance firms. 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