United States Treasury Secretary Scott Bessent announced a reform of banking activity in the country, which will cut with the rules created after the 2007-2008 financial crisis.
“We have to adopt a different approach, we should not rely on US decision making to international bodies. Instead, we must make our own analysis from the beginning to determine a regulatory framework that is in the interest of the United States,” Bessent said on Wednesday in a speech by an American Bankers Association in Washington, later released by the Treasury Department.
The Basel III agreement was the international regulatory response to Consequences of the ‘subprime’ crisis, high -risk mortgage loans.
Barsally III It obliges banks and other credit institutions to maintain sufficient level of their own and liquidity funds to fulfill their obligations and absorb unexpected losses.
“It is time to retreat and reevaluate these and other costs”
The American ruler has granted that some of the standards-whose adoption process was initiated by the previous Biden Administration in 2023, and will now be interrupted-“they can inspire” the reform, but they will be “selectively”.
Firstly, Bessent said, the “capital reserve that applies to the largest banks” said, taking into account “the role that the associated stress tests play indirectly in pricing and financing attribution”.
“I have previously expressed my concern about the fact that restrictions on leverage capital are too frequent,” He stated, then realized that “post2008 reforms demanded major increases in banks’ investments in central bank reservations, treasure titles and other high quality assets”, which made “more than a quarter of bank balance sheets” [esteja] Now affected to these assets, more than double the percentage than before the 2008 crisis. “
The transfer to safe assets “meant less financing available for loans and other productive assets,” criticized the ruler.
“It is time to back down and reassess these and other liquidity costs and benefits,” he said, announcing that this assessment will “widen the role of loans and other productive assets as a guarantee of financing during a voltage period, thus helping banks to return to credit granting.”
On the other hand, the relief of restrictions on their own capital will be extended to large and small banks.
The new administration aims to “promote competitive parity between large and small banks and non -banking creditors”, namely reducing the proper funds for mortgage loans and other exhibitions for smaller banks.
USA want to change rules for cryptocurrencies
“This is just the beginning,” Bessent promised, adding that the Treasury Department plans to review “other aspects of prudential regulations”for example, Reviewing “closely the regulatory impediments for ‘blockchain’, ‘stablecoins’ and new payment systems.”
Blockchain is a decentralized registration of transactions, a digital database, a technology underlying Bitcoin and other cryptocurrencies, but has the potential to support a wide range of business.
Stablecoins are a type of cryptocurrency whose value is linked to another asset, such as a conventional currency or gold, to maintain a stable price.
US President Donald Trump promised in early March to pave the way to digital currencies and position the United States as pioneers of cryptocurrenciesconsidering them “a huge opportunity for economic growth and innovation in the” US financial sector.
Important symbol of the new attitude towards the cryptors of Trump – for large years a strong opponent – was the signature at the beginning of March Presidential decree establishing a “strategic reserve” fueled by about 200,000 bitcoins seized by court in civil and criminal proceedings.
