ABA Statement on Basel III Endgame Proposal

“The proposed Basel III ‘endgame’ reforms unveiled today fail to appreciate the negative economic consequences that come with forcing already strong banks to hold more capital than what is needed to maintain safety and soundness. Far from simply meeting international standards, these changes will require banks operating in the U.S. to meet even higher capital levels without any justification, and the proposal effectively rolls back regulatory tailoring that Congress approved on a bipartisan basis.

“As regulators themselves have concluded and recent stress tests have demonstrated, the U.S. banking system is already well capitalized. America’s banks have weathered recent economic headwinds well while continuing to provide critical support to their customers and communities. This unnecessary and overly broad proposal puts economic growth and resiliency at risk by restricting credit availability for businesses and other borrowers, as dissenting voices at the FDIC and Fed noted today. Asking banks to hold more capital than necessary carries real costs for everyday Americans.

“We will review these proposals with our members and join other stakeholders in vigorously opposing any reforms that threaten to harm the economy without adding to safety and soundness.”