The following can be attributed to Matt Well, spokesperson for the Regional Bank Coalition (RBC), in response to the Office of Financial Research’s new paper “Size Alone is Not Sufficient to Identify Systemically Important Banks.”

OFR has confirmed what regulators and legislators from both sides of the aisle have said for years: asset size alone cannot fully capture a banking institution’s risk level. It is a disservice to the financial system to rely solely on an arbitrary asset threshold, as it fails to make the system safer and sounder and hinders lending that boosts the U.S. economy. The Federal Reserve already uses a multi-factored test to make serious regulatory determinations; it’s time to use that approach in all instances where systemic risk is being measured, which Chairwoman Yellen endorsed at a Senate Banking hearing in July. We urge Congress to take action on the heels of this report by supporting the bipartisan Systemic Risk Designation Improvement Act of 2017 (H.R. 3312/S. 1893) to adopt a thorough, data-driven way to regulate financial institutions.”