MNI BRIEF: US Regulators Renew Scrutiny of Non-Bank Financials

The U.S. Financial Stability Oversight Council held a closed meeting Friday and regulators discussed options that would permit designation of non-bank firms as systemically important financial institutions (SIFIs) if they were to pose a risk to financial stability.

"The Council heard a presentation from Treasury staff on the Council’s options for assessing and responding to financial stability risks, including the process for designating nonbank financial companies for Federal Reserve supervision and prudential standards," according to a Treasury Department readout of the meeting among regulators.

Under the Obama administration, the FSOC had named several nonbanks as SIFIs, including insurers Prudential, MetLife, AIG, and GE Capital. The FSOC statement Friday said its 2023 priorities include climate-related financial risks, nonbank financial intermediation, risks related to digital assets, and Treasury market resilience. (See: MNI: US Treasury Clearing To Limit Contagion, Create New Risks)