Member Views

These Reforms Can Help Stop Digital Bank Runs

"Reform is urgent, since banking crises can happen at any time and a possible recession is looming. At the same time, the Biden administration should proceed carefully, given the important ramifications of the measures in question."

How Large Regional Banks Can Succeed in a Higher Interest Rate Environment

"An intensification of regulatory focus of large regional banks' management and oversight of interest rate risk, credit spread risk and liquidity will require a bold and intentional response," says Marcus Burnett, founder and chief executive of BWC member SOFR Academy. "We see five priorities for leading banks to get ahead of upcoming changes."

Capital Adequacy Approach to Bank Soundness is Fundamentally Flawed

"The International Monetary Fund should be at the centre of the arrangements for international financial surveillance," argues BWC member DeLisle Worrell.

"Its board is fully representative – even if in need of reform – to reflect the economic and financial weight of members, and it has a large and talented staff devoted to the analysis and surveillance of the international monetary, financial and exchange system."

Michael McRaith

This week, we welcome our newest member, Michael McRaith, vice chair of insurance solutions at Brookfield. In this role, he participates in all aspects of Brookfield’s global insurance operations.
 

Loss of Investor Confidence and the Banking Crisis

Central banks should become "more flexible in their interest rate decisions to calm down equity markets," while at the same time communicating "their commitment to bring inflation under control over time," argues BWC member Hung Tran.

Unintended Impact of LIBOR-SOFR Transition on Credit Markets and Economic Activity

According to Samim Ghamami of BWC member SOFR Academy, credit market stress has macroeconomic consequences. In this SOFR Academy Research Note, Ghamami shows that LIBOR-SOFR transition might worsen these macroeconomic consequences.

Five Steps to Stop the Next Run on America’s Banks

If bank executives' compensation "shifted away from cash and equity toward subordinated debt that they had to hold for several years, they would be less inclined to take the kinds of risks that could lead to failure," says BWC chair Bill Dudley.

The Failure of Silicon Valley Bank – Are There Lessons for the Basel Regulatory Framework?

The collapse of Silicon Valley Bank (SVB) on March 10 was a failure that should not have occurred. A confluence of factors involving regulators, SVB management, and its depositors came together in an adverse way to bring down the bank.

The Fed Can Fight Both Inflation and Bank Contagion

BWC chair Bill Dudley says in a piece for Bloomberg Opinion that for the Fed, "what matters is that it do what’s needed on the financial stability side as soon as possible, so that it can safely pursue the right monetary policy at future meetings."

Protecting Bank Deposits

BWC member Warren Coats: "The cost of the Chicago Plan... is the need for banks to fund their credit operations with equity or long-term debt, rather than with potentially volatile deposits. We should move to the Chicago Plan and fully separate money from credit."