The Financial Stability Oversight Council (FSOC) addressed its financial stability concerns for private credit in its 2024 annual report published late last week. The report incorporates a call out box entitled “Private Credit: Financial Stability Considerations” to discuss perceived risks related to opacity, liquidity, and interconnectedness with banks and insurers, echoing several of the same...
Private markets are undoubtedly an area of global regulatory focus – as news coverage continually reminds us. But what does that really mean? And what does it portend for credit markets?
The prudential bank regulators recently proposed revisions to depository financial institutions’ quarterly Consolidated Report of Condition and Income filings (i.e., call reports) to address an observed lack of granularity and inconsistency of reporting on loans to nondepository financial institutions (NDFIs). These filings are used by the regulators to inform monetary and public policy decisions. The...
On November 3, 2023, the Financial Stability Oversight Council (“FSOC”) finalized new procedural guidance for its use of one of its most consequential authorities: its ability to designate nonbank financial companies as “systemically important financial institutions” (“nonbank SIFIs”). Designation as a nonbank SIFI subjects a nonbank company to Federal Reserve supervision and prudential standards. Presented...
On November 3, 2023, the Financial Stability Oversight Council (“FSOC”) finalized new procedural guidance for its use of one of its most consequential authorities.
The Financial Stability Oversight Council (FSOC) recently published updated guidance on its process for determining that nonbank financial companies are systemically important. These revisions, initially proposed in April 2023, update the interpretive guidance adopted in 2019. A determination as a systemically important financial institution (SIFI) would subject a nonbank to supervision by the Federal Reserve...
