The United States Federal Reserve Governor Lael Brainard said on Monday that the coming months will see a number of regulatory reforms to help the financial system cope with the Coronavirus pandemic, Bloomberg reported.<\/p>\n\n\n\n
Brainard\u2019s remarks came in her speech to the Institute of International Bankers.<\/p>\n\n\n\n
\u201cWe should not miss the opportunity to distill lessons from the COVID shock and institute reforms so our system is more resilient and better able to withstand a variety of possible shocks in the future, including those emanating from outside the financial system.\u201d<\/p>
\u201cRegulators and international standard-setting bodies have an opportunity to draw important lessons from the COVID shock about where fragilities remain.\u201d<\/p>
\u201cA number of common-sense reforms are needed to address the unresolved structural vulnerabilities in non-bank financial intermediation and short-term funding markets.\u201d<\/p>
\u201cIf properly calibrated, capital buffers or reforms that address the first-mover advantage to investors that redeem early, such as swing pricing or a minimum balance at risk, could significantly reduce the run risk associated with money funds.\u201d<\/p>
\u201cSome have suggested that the Federal Reserve could provide standing facilities to backstop repos in stress conditions, possibly creating a domestic standing facility or converting the temporary Foreign and International Monetary Authorities (FIMA) Repo Facility to a standing facility.\u201d<\/p>
\u201cThese measures involve complex tradeoffs and merit thoughtful analysis in advancing the important goal of ensuring Treasury market resilience.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
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