In the coming weeks, the government will rightfully turn its attention to evaluating and intensifying various regulatory and supervisory requirements for banking institutions. In this brave new world, banking regulators and policymakers more broadly must think outside the box and build and use new tools. The development of a centralized and automated real-time financial monitoring system (RFMS) for regulators. However, it also makes it challenging to get a clear picture of what’s happening in the banking system with different banking regulators. But getting a much better handle on the risks in the regulated banking system through adoption of the foregoing recommendations at least will represent a major step toward a safer and more resilient financial system.

Source: New York Times April 21, 2023 12:45 UTC