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Federal Reserve Meeting Minutes Highlight Elevated Bank Interest Rate Risks
Summary: According to sources, the Federal Reserve released the minutes of its July meeting, mentioning that vulnerabilities related to leverage in the financial sector were described as 'significant'. Despite banks maintaining high regulatory capital ratios and all banks participating in annual stress tests being able to meet minimum capital requirements under stress scenarios, banks are still ...
According to sources, the Federal Reserve released the minutes of its July meeting, mentioning that vulnerabilities related to leverage in the financial sector were described as 'significant'. Despite banks maintaining high regulatory capital ratios and all banks participating in annual stress tests being able to meet minimum capital requirements under stress scenarios, banks are still considered more susceptible to interest rate risks than historical norms. Non-bank life insurance companies continue to increase their allocation to private credit and risky assets, with some funding coming from short-term non-traditional liabilities.
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Link: Federal Reserve Meeting Minutes Highlight Elevated Bank Interest Rate Risks [Copy]
