Kneejerk regulatory reaction to SVB risks lending squeeze
Risk manager at regional bank says any Dodd-Frank 2.0 would be ‘fighting the last war’
A senior risk officer at a US regional bank has cautioned against a rushed regulatory response to the failure of Silicon Valley Bank, warning that an overreaction could cause a broader economic crisis by squeezing lending even further.
Stephen Boras, head of model risk management and validation at Citizens Bank, urged regulators instead to take a considered approach. He emphasised these views were his own, rather than those of Citizens Bank.
“I think what we need to do is have a cooling-off
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