ABA believes the proposed Basel III capital rules’ ultimate effect would be to “make banks less safe and sound, their capital more volatile and unstable, and leave banks less able to serve their customers and communities,” the association said last week in a letter to Rep. Peter King (R-N.Y.).
ABA was rounding out the record on the federal banking agencies’ Sept. 17 response to King and eight other House members on the proposed Basel III capital rules’ impact on community banks. King and his colleagues on July 17 had asked the agencies a series of questions on the Basel III proposals.
ABA noted in its letter that the proposed rules are a one-size-fits-all approach, and it is unlikely that the agencies had sufficient data to study the proposals’ impact on U.S. banks, particularly community banks.
Read ABA’s letter to King.
ABA is reminding members that the comment deadline on the Basel III proposals is Oct. 22, and it is imperative that the agencies hear from as many banks as possible. Information to help craft and send comment letters is available on the ABA Basel III Web page.