Senators from both parties today expressed concern that the proposed Basel III endgame capital requirements would hurt small businesses, curb affordable housing efforts and drive banking activity to the nonbank sector.
Banking regulators have failed to provide the proper analysis or data to justify the need for proposed capital standards for financial institutions with at least $100 billion in assets, and should withdraw the rulemaking as a result, a group of 39 Republican senators said.
ABA strongly supports efforts by the House Financial Services Subcommittee on Financial Institutions and Monetary Policy to investigate “the chaotic state of global financial standards,” such as the proposed U.S. adoption of the Basel III “endgame” capital standards, the association said.
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 Federal Reserve, FDIC and OCC should conduct a full, public study into the costs of their proposed capital requirements and re-propose the rule after the study’s results are released, ABA and five business groups said.
Banking regulators have failed to make the case that the U.S. should adopt the so-called “Basel III endgame” capital standards, in part because the international Basel Committee on Banking Supervision had offered little to no explanation for some of its decisions in drafting the standards, FDIC Board Member Jonathan McKernan said.
Republicans on the House Financial Services Committee called on federal regulators to withdraw proposed capital requirements for banks with more than $100 billion in assets.
The FDIC, Federal Reserve and Office of the Comptroller of the Currency proposed new capital…
One of the most concerning proposals arising from the international cooperative process is the Basel III endgame—a term for the next round of regulatory capital reforms developed by the Basel Committee on Banking Supervision.
It’s inappropriate to ask American consumers and businesses to simply rely on regulators’ assurances about the future — particularly when they’re being asked to accept new standards developed by an entity far removed from our financial system.