By disregarding previous analysis of the impact capital reforms can have on the derivatives market, the authors argue federal banking regulators will harm businesses’ ability to hedge risk.
Browsing: Basel III endgame
Working with state banking associations is just part of the teamwork it takes for effective issue advocacy, Nichols said. Bankers’ voices need to be heard, too.
We should think twice about creating a regulatory framework that drives business away from the brightly lit world of highly regulated banks and into the shadows of private credit.
The FDIC, Federal Reserve and OCC announced that they have extended the period for public comment on the proposed capital requirements for banks with more than $100 billion in assets to Jan. 16, 2024.
The U.S. banking system is already well capitalized, and regulators have not demonstrated how the “Basel III endgame” proposal would increase safety and soundness.
Policymakers should carefully consider whether a proposed increase in capital standards is efficient and appropriately targeted, as regulatory reform in the banking sector can pose potential financial stability risks if the reforms in question fail to account for the potential consequences, Federal Reserve Governor Michelle Bowman said,
Federal Reserve Vice Chairman of Supervision Michael Barr laid out his case for higher capital requirements for banks with more than $100 billion in assets during the American Bankers Association Annual Convention in Nashville, arguing that the private costs of capital must be weighed against the social benefits of creating a more resilient financial system.
Community banks need to get engaged on the regulators’ capital framework overhaul, outgoing ABA Chair Dan Robb told ABA’s Annual Convention in Nashville this morning.
ABA President and CEO Rob Nichols called for unity in the banking industry as bankers confront present challenges. In his opening address at the ABA Annual Convention in Nashville, Nichols noted that “we are strongest and most effective in our advocacy when we are able to come together.