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Home > About FDIC > Board of Directors & Senior Executives >Thomas M. Hoenig - Capital Adequacy

Thomas M. Hoenig - Capital Adequacy

Capital standards must be simplified and strengthened to contain the impulse for excessive leverage and to provide a more effective backstop to absorb unexpected losses. Using a straightforward ratio of tangible equity capital to total assets is a more conservative, more credible method of assessing capital adequacy because it counts as the only capital only that can truly absorb losses.


January 20, 2016 The Relative Role of Debt in Bank Resiliency and Resolvability
Remarks by FDIC Vice Chairman Thomas M. Hoenig, presented to the Peterson Institute for International Economics
November 5, 2015 "Post-Crisis Risks and Bank Equity Capital"
Remarks by FDIC Vice Chairman Thomas M. Hoenig, presented to the 18th Annual International Banking Conference at the Federal Reserve Bank of Chicago
September 16, 2015 The Leverage Ratio and Derivatives
Presented to the Exchequer Club of Washington, DC.
April 15, 2015 A Conversation about Regulatory Relief and the Community Bank
Presented to the 24th Annual Hyman P. Minsky Conference; National Press Club, Washington, DC
March 2, 2015 Financial Supervision: Basic Principles
Presented to the Institute of International Bankers Annual Washington Conference; Washington, DC
June 2, 2014 Commercial Banking: One Industry?
Delivered at the North Carolina Bankers Association Convention Palm Beach, Florida
May 7, 2014 Can We End Financial Bailouts?
Presented to the Boston Economic Club Boston, Massachusetts
February 24, 2014 Presentation to the National Association for Business Economics
30th Annual Economic Policy Conference; Arlington, Virginia
September 2013 Lehman Brothers: Looking Five Years Back and Ten Years Ahead
Presented to the National Association of Corporate Directors, Texas TriCities Chapter Conference, Houston, Texas
April 9, 2013 Basel III Capital: A Well-Intended Illusion
Remarks to IADI Research Conference. Basel, Switzerland
November 30, 2012 Financial Oversight: It's Time to Improve Outcomes
Presented to the AICPA/SIFMA FSA National Conference; New York, NY
September 14, 2012 Back to Basics: A Better Alternative to Basel Capital Rules
Delivered to The American Banker Regulatory Symposium; Washington, D.C.
  Archived speeches delivered as President of the Federal Reserve Bank of Kansas City

Statements, Letters, Op-eds, and Other Material

April 22, 2016 "Basel Plans Would Weaken Leverage Ratio" - Risk Magazine op-ed by FDIC Vice Chairman Hoenig, April 22, 2016
April 7, 2016 Global Capital Index - PDF (PDF Help)
Calculation explanation
Archived Versions:
4th Quarter 2014 (December 31, 2014)
2nd Quarter 2014 (June 30, 2014)
4th Quarter 2013 (December 31, 2014)
2nd Quarter 2013 (June 30, 2013)
4th Quarter 2012 (December 31, 2012)
2nd Quarter 2012 (June 30, 2012)
August 20, 2015 Financial Times Op-ed by Thomas M. Hoenig on the leverage ratio and derivatives. August 12, 2015
June 17, 2015 Letter to the Editor, Wall Street Journal - Published June 15, 2015
May 20, 2015 Statement of FDIC Vice Chairman Hoenig on Capital
April 2, 2015 Statement on the Release of Fourth Quarter 2014 Global Capital Index
March 23, 2015 Lending Through the Cycle (PDF) - Data on strong capital levels supporting lending
April 8, 2014 Statement by Thomas M. Hoenig, Vice Chairman, Board of Directors, Federal Deposit Insurance Corporation on the Adoption of the Supplementary Leverage Ratio
November 26, 2013 Statement by FDIC Vice Chairman Hoenig on the Proposed Supplemental Leverage Ratio
"The supplemental leverage ratio should be adopted as proposed. The leverage ratio represents a minimum acceptable level of capital against total tangible assets and is the appropriate measure to judge the capital soundness of an institution. The discussion of unconventional monetary policy on excess reserves and its effect on the composition and risks affecting the balance sheet is a separate discussion."
August 19, 2013 Safe banks need not mean slow economic growth - PDF (PDF Help); Financial Times
July 23, 2013 Statement on the use of international accounting standards when computing the leverage ratio for systemically important financial institutions
July 9, 2013 Statement on Basel III Capital Interim Final Rule and Notice of Proposed Rulemaking
December 13, 2012 Get Basel III Right and Avoid Basel IV, Financial Times
June 12, 2012 Statement on Basel Capital Notices of Proposed Rulemaking



Last Updated 4/25/2016

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