• While the U.S. banking systems remains "sound and resilient" with increased capital ratios, the Federal Reserve is keeping an eye on risks such as delinquency rates in certain commercial real estate loans and cybersecurity, Michael Barr, Federal Reserve vice chair for supervisions said in prepared testimony on Wednesday to the U.S. House of Representatives Committee on Financial Services.
• Also, "delinquency rates for certain consumer loans are also elevated," he plans to say. "In response to rising delinquencies, banks have increased loan loss provisions."
• In the prepared text, Barr gave little indication of progress in regulators coming to an agreement on the Basel III endgame rules regarding banks' capital requirements.
• The SPDR S&P Bank ETF (NYSEARCA:KBE) fell 0.7% in early trading ahead of the testimony, which starts at 10:00 AM ET.
• Developing... check back for updates.

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