Nine Republican Members of the House Financial Services Committee – led by Rep. Peter King (R-NY) – wrote to the Federal Reserve, OCC, and FDIC yesterday regarding the proposed rules to implement the Basel III regulatory capital requirements.
“[W]e want to make sure any response to the financial crisis does not needlessly hamper economic recovery in our communities,” they wrote. “For those reasons, we wanted to convey some concerns that have been shared with us regarding the ‘one-size fits all’ application of the Basel II capital requirements.”
The letter relates banker concerns that the new standards “could significantly curb their ability to lend and provide liquidity in their local markets.” The Members ask the regulators to respond to a series of questions regarding “scaling capital standards to the size and complexity of the institution,” whether the regulators have concerns about the one-size fits all approach, and the new standards’ effects on consolidation.
“We are concerned that the comment period…does not provide sufficient time to examine adequately the implications and impact of the proposals and to provide comments reflecting the information that the agencies will need to make fully informed judgments,” the joint letter said.
Read the letter.
ABA has asked the federal banking regulators to extend by 90 days the September 7 comment deadline on the three proposed rules to implement Basel III, which were issued last month. Our Basel III page on aba.com includes links to the proposals, useful summaries, and other resources.
Read ABA's request for an extension.
Read ABA Basel summaries.