As the banking industry is in a state of flux, opinions are divided over regulatory actions required to alleviate the situation.
A banking CEO shared his thoughts on the crisis in an interview on Monday.
Banking Oligopoly? JPMorgan Chase & Co.'s JPM Jamie Dimon may not have become “too big for his boots,” even with the First Republic takeover, said Standard Chartered CEO Bill Winters in an on-stage interview at the Dubai Fintech Summit, Bloomberg reported.
The bank chief noted that JPMorgan's share of deposits in the U.S. is around 12% now. Leading banks in many other countries have more than 12% deposit share, he added.
Even with the Dimon-led company handling First Republic's deposits, the U.S. is still a "competitive" market, Winters said. "What regulators need to be careful about is the concentrated deposit market share in sub-markets such as the New York City region, Chicago and Los Angeles, but 12% is manageable.”
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Rethink Needed: Winters also said the "whole resolution concept of what is too big to fail" should be reviewed.
"We just saw a $250 billion bank named SVB was deemed too big to fail in a conventional resolution way," he said.
While lauding the regulatory response of providing access to funding for all of the nation's banks, Winters said the ideal solution could have been to provide liquidity to the challenged banks ahead of the demise.
Even if they had still collapsed, it would have been "in a more orderly way that wouldn't have undermined confidence in the broader system," the StanChart CEO said.
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