Regulators to remain vigilant as banking rules finalized

by Kelli Rogers15 Jul 2013
While regulators say Dodd-Frank is close to final implementation, one official has warned against regulators relaxing their guard.
 
A committee of regulators has met before the U.S. Senate Committee on Banking, Housing and Urban Affairs to present an update on the Dodd-Frank regulatory overhaul. While the hearing was told that Dodd-Frank implementation "closer to the end than the beginning", Treasury Department undersecretary for domestic finance Mary Miller has warned that regulators must remain vigilant.
 
"We expect to approach the point of substantial completion of implementation of the Dodd-Frank Act. That does not mean we will be able to relax our guard."
 
Miller said regulators will still be required to be flexible and to stand ready to address new threats to the financial system.
 
The regulators assured the Senate committee that measures of Dodd-Frank designed to prevent a repeat of the global credit crisis will mostly be finished by the end of 2013. According to Federal Reserve Governor Daniel Tarullo, implementation of a risk-based capital surcharge for systemically important banks, a liquidity rule, and the Volcker rule to ban proprietary trading by banks, should be completed by the end of the year by regulators. 
 
"With one exception, we expect to finalize the remaining proposed enhanced prudential standards around the end of the year as well. The one exception is single-counterparty credit limits," Tarullo said.

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