ABA Statement on FDIC Chair Gruenberg's Remarks on Capital Standards

“We are disappointed in FDIC Chair Gruenberg’s comments today signaling an increase in bank capital standards. America’s banks are already well capitalized – something Chair Gruenberg, Chair Powell and Treasury Secretary Yellen have all reiterated in recent days. While asking banks of any size to hold even more capital will come at a cost to the economy, broadening the scope of these complex standards designed for internationally active banks to smaller institutions will make it particularly difficult for midsize and regional banks to provide credit to consumers and businesses during times of economic stress.

“We have long believed that regulation should be tailored to a bank’s risk and business model. Arbitrary asset thresholds and changes not justified by rigorous data and evidence are a mistake that will only make it harder for banks of all sizes to meet the needs of their customers, clients and communities while driving financial activity to less-regulated nonbanks. The stakes are too high for consumers and businesses to simply rely on regulators’ assurances about the future. Policymakers will need to demonstrate that the benefits outweigh the significant costs to the economy.

"While we appreciate today’s preview, we look forward to reviewing the proposed rule in detail and with the necessary time needed to analyze the impact such a complex rule will have on both our industry and the broader economy.”