US Nonbanks May See Tougher Systemic-Risk Label

The transcript discusses a meeting where a proposal was made to consider non-banks as systemically important, similar to traditional banks. The Financial Stability Oversight Council is evaluating options for designating non-bank financial companies for Federal Reserve supervision, which would require them to follow regulatory rules and maintain capital reserves. This consideration reflects the potential systemic risk posed by non-banks due to their size and counterparty exposure. The council's decision is not guaranteed, but it is a priority for 2023.

What options did the Treasury staff provide to the Council regarding non-bank financial companies?

What was the purpose of the meeting held by the Financial Stability Oversight Council?