Are post-crisis US bank regulations holding markets back?

Post-crisis bank regulations were designed to create a safer financial system. Nearly two decades later, US regulators are revisiting the implementation of some of those rules, with the potential to create more capacity for growing financial markets - and perhaps affect the future of financial stability

On this month's Flip Side, Brad Rogoff welcomes Jeff Meli, former host of The Flip Side and current Clinical Professor of Finance at NYU Stern School of Business, to debate the implications of changes to the US implementation of the international banking capital framework. Supporters argue the changes could improve Treasury market liquidity, expand intermediation capacity and support bank profitability. Others question the motivation for the changes, and caution that further revisions could eventually force policymakers to make harder choices between financial stability and market capacity.

Together, they examine the trade-off between stability and capacity, and whether higher bank profitability translates into more market capacity, or simply greater shareholder returns at a time when investor capital is increasingly being drawn toward AI-related opportunities.

Listeners can learn more about this topic:

• Flip Side #75: US bank regulatory reform: Capital relief or systemic risk?
• Flip Side #73: Do the risks of NBFI lending outweigh the opportunities?
• Barclays Brief #32: Decoding the bond sell-off

Clients of Barclays Investment Bank can read our latest reports by logging in to Barclays Live:

• Banks Research: Capital Call