The banking system is substantially better prepared to manage unexpected shocks today than it was before the financial crisis. Now, when the waters are relatively calm, is the right time to step back and examine the efficiency and effectiveness of our protection against future storms. With the EGRRCPA, Congress made a significant down payment on that task.
In less than 18 months after the act’s passage, we implemented all of its major provisions. Earlier this year, we completed a cornerstone of the legislation to tailor our rules for regional banks, which was entirely consistent with a principle at the heart of our existing work: firms that pose greater risks should meet higher standards and receive more scrutiny.