Basically, today’s situation is characterised by the fact that the US, in particular, is recording large trade deficits, thus requiring substantial net capital inflows, with other countries – especially in emerging Asia, but also oil exporting countries – providing this capital through sizeable trade surpluses.
Enhanced prudential standards for large U.S. and foreign banking firms The Federal Reserve has issued proposed rules, pursuant to section 165 of the Dodd-Frank Act, which would establish enhanced prudential standards for U.S. bank holding companies and foreign banking organizations with total global consolidated assets of $ billion or more. We anticipate that these rules will be finalized in the near term.