Global liquidity flows threatened by Dodd-Frank provision on foreign banks

japan

The Dodd-Frank and US Federal Reserve proposal to regulate foreign banking organisations and ring-fence liquidity could hamper the efficient allocation of capital, according to a senior chief risk officer in Japan. Section 165 of the Dodd-Frank Act says that in order to mitigate risks to the financial stability of the US from the failure of "large, interconnected financial institutions", the act will establish prudential standards for non-bank financial companies with total consolidated asset